Certain final Dodd-Frank swaps rules become effective on October 12, 2012, the date that is 60 days after final rules on the definition of the term "swap" were published in the Federal Register.
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.
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.