New Final Rules

  • Ownership and Control Reports.

On November 18th, the Commodity Futures Trading Commission ("CFTC") published new rules to enhance its identification of futures and swap market participants. The new and amended forms require the reporting of certain trading accounts active on reporting markets that are designated contract markets or swap execution facilities. The forms collect ownership and control information with respect to both position-based special accounts and trading accounts that meet specified volume-based reporting levels. The rules are effective February 18, 2014. The compliance date is August 15, 2014.

  • Systemically Important Derivatives Clearing Organizations.

On November 15th, the CFTC adopted new final rules establishing additional compliance standards for systemically important DCOs ("SIDCOs") and DCOs that elect to opt-in to the SIDCO regulatory requirements. The new regulations include provisions concerning: procedural requirements for opting in to the regulatory regime as well as substantive requirements relating to governance, financial resources, system safeguards, special default rules and procedures for uncovered losses or shortfalls, risk management, additional disclosure requirements, efficiency, and recovery and wind-down procedures.

Staff Guidance

  • Guidance for Swap Execution Facilities.

On November 15th, the CFTC's Division of Market Oversight published guidance to swap execution facilities ("SEFs"). The guidance addresses six areas: a SEF's use of proprietary data or personal information collected by the SEF from its market participants; consent to the jurisdiction of a SEF; registration requirements under CFTC Regulation 37.3; member guarantees; the requirements for taking emergency actions; and certain SEF reporting obligations.

Other Developments

  • CFTC Issues First Weekly Swaps Report.

On November 20th, the CFTC announced the initiation of the CFTC Weekly Swaps Report. The weekly report will provide a detailed view of the swaps marketplace. The first report covers the interest rate and credit asset classes and provides three views of the swaps market: the gross notional outstanding value, the weekly transactions measured by dollar volume, and the weekly transactions measured by ticket volume. For each asset class, the report provides detailed breakdowns of the swaps market by product type, currency (six major currencies), tenor, participant type, and whether swaps are cleared or uncleared. CFTC Press Release.

  • CFTC Nominee Profiled.

On November 20th, ProPublica profiled Timothy Massad, the Treasury Department official nominated to succeed Gary Gensler as Chairman of the CFTC, calling him a "mystery man." Profile.

  • Temporary SEF.

On November 18th, the CFTC approved the application of LatAm SEF, LLC for temporary registration as a swap execution facility. Notice.

  • No-Action Relief.

On November 15th, the Division of Swap Dealer and Intermediary Oversight issued a no-action letter that provides relief from certain regulatory obligations of swap dealers and major swap participants in the context of an "Intended-To-Be-Cleared Swap." The relief extends to certain requirements under the External BCS and Commission Regulation 23.504, subject to the conditions and limitations set forth in the letter. This letter supersedes Letter No. 13-33, and states that no person may rely upon the relief provided in Letter No. 13-33 after November 15, 2013.