On June 23, 2016, the CFTC requested public comment on 34 submissions the CFTC received over the past several years from seven registered derivatives clearing organizations pursuant to section 2(h)(2)(B) of the Commodity Exchange Act and CFTC regulation 39.5(b). The submissions cover certain interest rate swaps, credit default swaps, foreign exchange non-deliverable forwards, energy swaps, agricultural swaps and inflation swaps. Public comments will inform the CFTC as it considers whether to propose a swap clearing requirement pursuant to section 2(h)(2)(D) of the CEA.
In posting these submissions, the CFTC is not proposing a swap clearing requirement, as the CFTC did most recently on June 9, 2016, regarding certain interest rate swaps. The submissions do not include those swaps that are subject to this recent proposal or the swaps that are currently required to be cleared under the CFTC’s existing clearing requirements. If the CFTC decides to propose a clearing requirement determination for any of the swaps covered by the submissions posted on June 23, then, at that time, the CFTC will invite further public comment in response to a notice of proposed rulemaking, similar to the one published in the Federal Register on June 16, 2016 (81 Fed. Reg. 39506).
Comments may pertain specifically to a single submission or generally to several or all submissions. The CFTC is particularly interested in comments that provide data and analysis and that discuss the swaps in terms of the five factors that the CFTC is required to consider in determining whether to issue a clearing requirement determination under section 2(h)(2)(D) of the CEA. The comment period ended on July 25, 2016.
The CFTC press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7396-16.