As has been well documented on PLC Finance, October 12, 2012 is the date that parties must begin to comply with certain final Dodd-Frank swaps rules triggered when final rules on the definition of the term "swap" were published in the Federal Register (see Legal Updates, Regulators Define Key Dodd-Frank Terms "Swap" and "Security-based Swap" Triggering Title VII Compliance and Compliance Dates for Dodd-Frank Swaps Rules Triggered by Publication of Swap Definitions. As a practical matter, however, few final rules are applicable as of this date.

Most notably, October 12, 2012 is the date when entities engaging in non-exempt swap activity must begin to tally the notional amounts of this swap activity entered into on and after that date for purposes of determining whether or not they must register as a swap dealer (SD) or major swap participant (MSP) under Title VII of Dodd-Frank (see Practice Note, Is Your Client a Swap Dealer or Major Swap Participant? Breakdown of Final Dodd-Frank Definitional Rulemaking). However, under the final rules, parties that cross the threshold amounts of qualifying swap activity have two months from the end of the month in which they cross the threshold to register. Therefore, the earliest parties must register as SDs and MSPs under the final rules is December 31, 2012.

Because of this, certain rules that technically become effective on October 12, 2012, such as swap data reporting (see Practice Note, US Derivatives Regulation: CFTC Swap Data Reporting and Recordkeeping Rules) need not be complied with as a practical matter until January 1, 2013 at the earliest.

Compliance with certain final rules applicable to SDs and MSPs that were scheduled to become effective on October 12, 2012, such as external business conduct (EBC) standards for SDs and MSPs, has also been delayed until January 1, 2012 (see Legal Update, CFTC Delays Compliance with External Business Conduct Standards for Swap Dealers and MSPs). Compliance with other final SD and MSP rules, such as rules on internal business conduct and swap documentation matters, are also not applicable until January 1, 2013 at the earliest, as a practical matter, when the largest swap trading entities begin to register as SDs and MSPs.

Final CFTC position limits rules that were also scheduled to become effective on October 12, 2012 were vacated by a federal district court (see Legal Update, CFTC Commodity Position Limits Rules Vacated by DC District Court). Therefore, these rules are not effective.