OCC Stress Testing Guidance and CRE Stress Test Tool

On October 18, the OCC provided guidance to national banks and federal savings associations with assets of $10 billion or less on using stress testing to assess risk in their loan portfolios. The guidance indicates that stress tests do not need to involve sophisticated analysis or third-party consultative support. The OCC is also making available a new portfolio level stress tool for income producing commercial real estate loans. OCC Release.

SEC Proposed Rule for Security-Based Swap Dealers and Major Security-Based Swap Participants

On October 17, the SEC proposed capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants as required by the Dodd-Frank Act. The proposal: (i) sets minimum capital requirements; (ii) establishes margin requirements with respect to non-cleared security-based swaps; and (iii) establishes segregation requirements for security-based swap dealers and notification requirements with respect to segregation for security-based swap dealers and major security-based swap participants. Comments may be submitted for 60 days following publication in the Federal Register. SEC Release. SEC Proposed Rule.

CFTC Final Rule to Incorporate Swaps into Existing Regulations

On October 16, the CFTC approved a final rule that amends regulations to implement aspects of the Dodd-Frank Act by changing certain definitions and recordkeeping regulations so that they apply to both futures and swaps. The final rule will be effective 60 days after publication in the Federal Register. CFTC Release.

CFTC No-Action Letters

On October 12, the CFTC released a number of no-action letters and interpretive guidance addressing: