The Commodities Futures Trading Commission (CFTC) has issued for comment a proposal for the phased implementation of the trading documentation and margin requirements for swaps under Dodd-Frank. Recognizing that most swap rules have not yet been finalized and that “some market participants may require more time to ensure that their swap transactions comply with certain new regulatory requirements,” the CFTC has proposed a phased implementation schedule for trading documentation and margin requirements under Dodd-Frank based on the swap activity level of swap participants. According to the proposed rules, implementation of these requirements will be phased in depending on the category of market participant engaged in a swap transaction. Category 1 entities would include swap dealers, security-based swap dealers, major swap participants, major security-based swap participants, and private funds executing over 20 swaps per month. Category 2 entities would include commodity pools, private funds executing less than 20 swaps per month, employee benefit plans, and persons predominantly engaged in certain banking or financial activities other than entities which are third-party subaccounts. Category 3 entities would include Category 2 entities which are third-party subaccounts. Category 4 entities would include any entities not included in Category 1, 2 or 3. Category 1 entities would have 90 days to comply with final trading documentation and margin rules. Category 2 entities would have 180 days and Category 3 and 4 entities would have 270 days. Compliance comments are due on November 4, 2011. A copy of this proposed rule can be accessed by clicking here.