On May 2, 2016, the Commodity Futures Trading Commission approved a final rule to amend a requirement found in CFTC Regulation 23.500(i) that swap dealers and major swap participants exchange the terms of swaps with their counterparties for portfolio reconciliation so that SDs and MSPs need only exchange the “material terms” of swaps. The final rule also amends the definition of “material terms” in CFTC Regulation 23.500(g). The final rule benefits SDs, MSPs, and their counterparties by allowing them to focus on reconciling data fields that impact swap valuation and counterparty obligations, without impairing the CFTC’s ability to oversee and regulate the swaps markets.

The CFTC press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7365-16 and the final rule is available at: http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/federalregister050216.pdf