By Derrick D. Cephas and Dimia Fogam

This week, the Federal Reserve Board (“FRB”) issued a statement confirming
that it intends to extend the period provided for under the Volcker Rule for
banking entities to conform their ownership interests in and sponsorship of
collateralized loan obligation vehicles (“CLOs”) with the requirements of the
Volcker Rule.

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By Eric Peterman and Adia Goss

Pursuant to a No-Action Letter dated April 9, 2013, the Commodity Futures Trading Commission (the “CFTC”) extended certain of the dates by which a swap counterparty that is not a swap dealer (“SD”) or major swap participant (“MSP”) must comply with its swap data reporting requirements, as set forth in Parts 43, 45 and 46 of the Commodity Exchange Act (the “CEA”).  As required by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), Part 43 establishes rules for the real-time public reporting of swap transaction data, Part 45 establishes swap data recordkeeping rules and rules for reporting swap transaction data to a registered swap data repository (“SDR”) and Part 46 establishes swap data recordkeeping and reporting rules for historical swaps.  Prior to the issuance of the No-Action Letter, the compliance date for such reporting requirements was April 10, 2013.  The new compliance dates are as follows:
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By Derrick Cephas & Dimia Fogam

On March 22, 2013, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB) and the Federal Deposit Insurance Corporation (FDIC) (collectively, the “bank regulators”) released their final guidance on leveraged lending activities.1 The final guidance does not deviate significantly from the proposed guidance released last year on March 26, 2012, but does attempt to provide clarity in response to the many comment letters relating to the proposed guidance received by the bank regulators. The final guidance is the latest revision and update to the interagency leveraged finance guidance first issued in April 2001.2
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By Eric J. Peterman and Adia Goss

On July 24, 2012, the Commodity Futures Trading Commission (the “CFTC”) proposed new rules to require certain credit default swaps (“CDS”) and interest rate swaps (“IRS”) to be cleared by registered derivatives clearing organizations (“DCOs”).  On August 7, 2012 the CFTC issued proposed rules that specified the first determination of classes of swaps to be subject to mandatory clearing under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).  A final rule was issued on December 13, 2012, and becomes effective on February 11. 2013.  Under the rules, market participants would be required to submit a swap that is identified in the rules as being subject to clearing by a DCO as soon as technologically practicable and no later than the end of the day of execution.  In a separate rule-making, the CFTC also finalized regulations on the timing of when market participants will need to comply with the new rules.

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By Hyun K. Kim

Section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) adds Section 4s(h) to the Commodity Exchange Act (the “CEA”), which imposes business conduct standards for swap dealers (“SDs”) and major swap participants (“MSPs”) dealing with counterparties generally and with “Special Entities”[1] specifically.  The Commodity Futures Trading Commission (the “CFTC”) has adopted a final rule regarding these business conduct standards, which was published in the Federal Register on February 17, 2012.  The final rule became effective on April 17, 2012 (the “Effective Date”).  SDs/MSPs must comply with the final rule on the later of 180 days after the Effective Date or the date on which SDs/MSPs are required to apply for registration.

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