Final Rules Amending the Effective Date of Swaps Regulation under Dodd-Frank Issued by CFTC | Practical Law

Final Rules Amending the Effective Date of Swaps Regulation under Dodd-Frank Issued by CFTC | Practical Law

The CFTC issued a final order amending the effective date of many Dodd-Frank regulations covering non-security-based swaps. The final order extends the exemption from compliance with these rules to July 16, 2012, or earlier if made possible by the completion of related rulemaking.

Final Rules Amending the Effective Date of Swaps Regulation under Dodd-Frank Issued by CFTC

by PLC Finance
Published on 21 Dec 2011 • USA (National/Federal)
The CFTC issued a final order amending the effective date of many Dodd-Frank regulations covering non-security-based swaps. The final order extends the exemption from compliance with these rules to July 16, 2012, or earlier if made possible by the completion of related rulemaking.
On December 19, 2011, the CFTC issued a final order (December 19 order) amending the effective date of many Dodd-Frank regulations covering non-security-based swaps. The December 19 order extends the date for compliance with many core Title VII swaps rules to July 16, 2012, or earlier if made possible by the completion of related rulemaking.
On July 14, 2011, the CFTC issued an order (July 14 order) granting a temporary exemption from compliance with many swap-related provisions of the Commodity Exchange Act (CEA) that were added by Dodd-Frank, which had been scheduled to take effect on July 16, 2011. Those provisions include:
  • Self-effectuating provisions of the Dodd-Frank Act that reference one or more terms for which the CFTC and the SEC are required to provide further definitional rulemaking.
  • Provisions of the Dodd-Frank Act that may apply to certain agreements, contracts and transactions in exempt or excluded commodities as a result of the repeal of the CEA exemptions and exclusions in former CEA sections 2(d), 2(e), 2(g), 2(h) and 5d.
The July 14 order extended the exemption from compliance with these rules to December 31, 2011. On October 18, 2011, the CFTC proposed to extend this exemption beyond the December 31, 2011 expiration date to the earliest of:
  • July 16, 2012.
  • For self-effectuating provisions of the Dodd-Frank Act referencing one or more terms for which the CFTC and the SEC are required to provide further definitional rulemaking, the effective date of the applicable final rule further defining the relevant referenced term.
  • For those provisions of the Dodd-Frank Act that may apply to certain agreements, contracts and transactions in exempt or excluded commodities as a result of the repeal of the CEA exemptions and exclusions in former CEA sections 2(d), 2(e), 2(g), 2(h) and 5d, a date to be determined by the CFTC.
The December 19 order affirms these dates.
The December 19 order addresses comments received in response to the CFTC's October 18, 2011 notice of proposed amendment.
For more information on delays of swaps rules under the Dodd-Frank Act, see Practice Note, Summary of the Dodd-Frank Act: Swaps and Derivatives: Delay in Title VII Implementation and Legal Update, CFTC Further Delays Compliance with Dodd-Frank Swaps Rules.