Swap Data Recordkeeping Compliance Delayed for Swap Dealers and MSPs | Practical Law

Swap Data Recordkeeping Compliance Delayed for Swap Dealers and MSPs | Practical Law

The CFTC issued time-limited no-action relief until March 31, 2013 from certain Dodd-Frank swap data recordkeeping requirements for swap dealers (SDs) and major swap participants (MSPs).

Swap Data Recordkeeping Compliance Delayed for Swap Dealers and MSPs

Practical Law Legal Update 0-522-2982 (Approx. 2 pages)

Swap Data Recordkeeping Compliance Delayed for Swap Dealers and MSPs

by PLC Finance
Published on 06 Nov 2012 • USA (National/Federal)
The CFTC issued time-limited no-action relief until March 31, 2013 from certain Dodd-Frank swap data recordkeeping requirements for swap dealers (SDs) and major swap participants (MSPs).
On October 26, 2012, the CFTC issued No-action Letter 12-29 exempting swap dealers (SDs) and major swap participants (MSPs) from certain Dodd-Frank swap recordkeeping regulations until March 31, 2012.
Among other things, the CFTC will not recommend enforcement action for failure to comply prior to March 31, 2013 with regulations that require SDs and MSPs to:
  • Maintain records of pre-execution oral communications that relate to swap trade information, including recordings of landline telephone conversations of personnel located in the US involved in swaps activity (CFTC Reg. 23.202(a)).
  • Maintain transaction records and daily trading records that are identifiable and searchable by transaction and counterparty (CFTC Regs. 23.201(a)(1) and 23.202(a) and (b)).
  • Use a coordinated universal time stamp when recording quotes before and at the time of execution of a swap (CFTC Reg. 23.202(a)(1)(ii), (a)(2)(iv), (b)(3) and (b)(4)).
  • Maintain swap records at their principle place of business (CFTC Reg. 23.203(a)(1)).
These rules were added to the CFTC Regulations by Dodd-Frank and related rulemaking.
The delay is being implemented by the CFTC to give firms more time to prepare for the infrastructural, procedural and other adjustments they may need to make to accommodate these rules.
For more information on SD and MSP swap data recordkeeping requirements, see Practice Note, US Derivatives Regulation: CFTC Swap Data Reporting and Recordkeeping Rules: Final CFTC Swap Data Recordkeeping Rules.
For details on which parties are SDs and MSPs under Title VII rulemaking, see Practice Note, Is Your Client a Swap Dealer or Major Swap Participant? Breakdown of Final Dodd-Frank Definitional Rulemaking.