Earlier today the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency and the Office of the Comptroller of the Currency (collectively, the Prudential Regulators) announced the extension of the public comment deadline for proposed rules to establish margin and capital requirements for swap dealers, major swap participants, security-based swap dealers and major security-based swap dealers (the Proposed Rules). Comments were originally due on June 24, 2011 but will now be due on July 11, 2011. The new public comment deadline for the Proposed Rules is coterminous with the public comment deadline for Commodity Futures Trading Commission (CFTC) proposed rules pertaining to capital and margin requirements. The Prudential Regulators’ announcing release is available here and will be published in the Federal Register in the coming days.
The extended public comment period is intended to provide market participants with additional time to analyze the Proposed Rules and prepare comments. The Proposed Rules will apply to swap dealers, major swap participants, security-based swap dealers and major security-based swap dealers that are regulated by one of the Prudential Regulators; the CFTC’s proposed rules will apply to non-bank swap dealers and major swap participants. For more information about the Prudential Regulators’ and the CFTC’s proposed capital and margin requirements, please see Sutherland’s Legal Alert dated April 13, 2011, available here.