On February 24th, the CFTC voted to propose three rules as part of its implementation of the Dodd-Frank Act. Two of the proposed rules would amend existing CFTC rules to conform them to the Dodd-Frank Act.
- The first proposal reflects the new definition for commodity pool contained in the Dodd-Frank Act and accordingly revises the definitions of commodity pool operator and commodity trading advisor. Fact Sheet on Proposed CPO and CTA Conforming Amendments; Q&A on Proposed CPO and CTA Conforming Amendments.
- The second proposal reflects the Dodd-Frank Act's changes regarding intermediaries. The Act removed the market category "Derivatives Transaction Execution Facility", and added the market category "Swap Execution Facility". The proposed rule would therefore remove all references to Derivatives Transaction Execution Facility, and selectively add references to Swap Execution Facility, Swap Dealer, and Major Swap Participant where appropriate. Also, the proposal would exempt an Associated Person of a Swap Dealer or Major Swap Participant from registering as a Swap Dealer or Major Swap Participant. Fact Sheet on Proposed Rule on Registration of Intermediaries; Q&A on Proposed Rule on Registration of Intermediaries.
- The third proposal sets forth the required time frame for a swap dealer, major swap participant, futures commission merchant, swap execution facility, and designated contract market to submit contracts, agreements, or transactions to a derivatives clearing organization for clearing. Fact Sheet on Proposed Rule Regarding Requirements for Processing, Clearing, and Transfer of Customer Positions; Q&A on Proposed Rule Regarding Requirements for Processing, Clearing, and Transfer of Customer Positions.