CFTC Further Delays Compliance with Dodd-Frank Swaps Rules | Practical Law

CFTC Further Delays Compliance with Dodd-Frank Swaps Rules | Practical Law

On October 18, 2011, the CFTC proposed a further extension to July 16, 2012 of temporary exemptive relief from compliance with Dodd-Frank non-security-based-swaps rules.

CFTC Further Delays Compliance with Dodd-Frank Swaps Rules

Practical Law Legal Update 4-509-3596 (Approx. 3 pages)

CFTC Further Delays Compliance with Dodd-Frank Swaps Rules

by PLC Finance
Published on 19 Oct 2011 • USA (National/Federal)
On October 18, 2011, the CFTC proposed a further extension to July 16, 2012 of temporary exemptive relief from compliance with Dodd-Frank non-security-based-swaps rules.
On October 18, 2011, the CFTC issued a proposed order granting an additional extension of the date for compliance with many core non-security-based-swaps rules under Title VII of the Dodd-Frank Act. The new compliance date will be July 16, 2012. This is the latest in a series of recent releases by regulators delaying Title VII compliance requirements until final rulemaking on threshold issues, such as basic definitions, is completed.
The proposed order would amend the CFTC's July 14, 2011 exemptive order by:
  • Extending the expiration of the exemption from compliance with certain core Title VII rules from December 31, 2011 to July 16, 2012. This relief applies to rules that reference one or more terms that require further definitional rulemaking under Dodd-Frank.
  • Adding provisions to account for the repeal and replacement (effective December 31, 2011) of the CFTC's Part 35 exemption, which addressed swaps in certain exempt or excluded commodities.
The CFTC's July 14 order otherwise remains effective.
For more information on the proposed order, see the CFTC's fact sheet and Q&A.
For more information on the July 14, 2011 order, see Legal Updates, Dodd-Frank One Year Later: Certain Swaps Provisions Go Effective, Most Delayed and Dodd-Frank Delay: CFTC and SEC Propose Temporary Exemptions from Swap Requirements and Clarify July 16 Compliance Obligations.
To learn more about the regulation of swaps and derivatives under the Dodd-Frank Act, see Practice Notes, Summary of the Dodd-Frank Act: Swaps and Derivatives and Road Map to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010: Swaps and Derivatives.