A CFTC final rule establishing new cross-border rules governing registration requirements applicable to swap dealers and major swap participants was published in the Federal Register.

As previously covered, the final rule will, among other things:

  • add a new definition of "U.S. person" intended to be harmonized with SEA Rule 3a71-3;

  • significantly change the counting requirements for non-U.S. subsidiaries of U.S. firms, including by adding a new category called "significant risk subsidiary";

  • provide "full relief" for transactions "arranged, negotiated or executed" in the United States by non-U.S. persons;

  • add a definition of "guarantee" that requires the "explicit recourse" of a counterparty to a U.S. person; and

  • revise the standards for substituted compliance determinations.

The final rule will go into effect on November 13, 2020.