Weil’s David Elphinstone has written an interesting article exploring a resolution passed last month by the European Parliament adopting, with amendments, the European Commission’s proposal for a regulation relating to short selling and certain aspects of credit default swaps.
Derivatives
To conform with the Dodd-Frank Act, the Commodity Futures Trading Commission (CFTC) proposed amendments to its existing regulations to update definitions, extend substantive regulatory benefits and obligations to swaps and their entities, and remove currently inapplicable regulations.
Pursuant to Section 732 of the Dodd-Frank Act, the Commodity Futures Trading Commission (CFTC) proposed a rule that would require futures commission merchants (FCMs) and introducing brokers (IBs) to adopt internal conflict of interest policies.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank or the Act) was enacted one year ago. At that time, it was heralded as perhaps the most dramatic set of regulatory reforms since the 1930s. The Act was expected to have significant effects in both the short and long term. Dodd-Frank’s provisions, however, are not confined to the US market. The Act is intended to have significant implications for non-US companies doing business in the United States or whose securities are listed on a US stock exchange. What is more, the Act purports to regulate certain transactions and entities with little direct connection to the United States.
The Dodd-Frank Wall Street Reform and Consumer Protection Act provides that a swap or security-based swap (collectively, “Swaps”) otherwise subject to mandatory clearing is not required to be cleared if one party to such Swap (1) is not a financial entity, (2) is using such Swap to hedge and or mitigate commercial risks, and (3) notifies the Commodity Futures Trading Commission (the “CFTC”) or Securities and Exchange Commission (the “SEC” and, together with the CFTC, the “Commissions”), as applicable, how it generally meets its financial obligations associated with entering into non-cleared Swaps (such exception, the “End-User Clearing Exception”).
The Commissions have each proposed new rules to specify requirements [click to continue…]
