Derivatives

 By Hyun K. Kim

The Commodity Futures Trading Commission (the “CFTC”) recently issued a final rule to establish an implementation schedule to phase in compliance with the clearing requirement under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).  The CFTC’s compliance and implementation schedule (the “Schedule”) allows additional time for some entities to comply in order to facilitate the transition to the new clearing regime without unduly disrupting markets and transactions.  The final rule was published in the Federal Register on July 30, 2012 and becomes effective on September 28, 2012.

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By Hyun K. Kim

The Commodity Futures Trading Commission (the “CFTC”) recently issued a notice of proposed exemptive order (the “Proposed Order”) regarding compliance with certain swap regulations under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).  The Proposed Order was published in the Federal Register on July 12, 2012.  The comment period for the Proposed Order expired on August 13, 2012.

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By Hyun K. Kim

The Securities and Exchange Commission (the “SEC”) recently issued a policy statement regarding the sequencing of the compliance dates for final rules applicable to security-based swaps to be adopted by the SEC pursuant to the Securities Exchange Act of 1934, as amended by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).  The policy statement was published in the Federal Register on June 14, 2012.  The comment period for the policy statement expired on August 13, 2012.

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By Jakub Biernacki

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”).  The proposed rules are the first determination of classes of swaps that will be subject to mandatory clearing under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).  Under the proposed 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.  The proposed rules will be open for public comment until September 6, 2012.  In a separate proposal, 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

On April 18, 2012, the Commodity Futures Trading Commission (the “CFTC”) and the Securities and Exchange Commission (the “SEC,” and together with the CFTC, the “Commissions”) adopted the much-anticipated joint final rules further defining “swap dealer,” “major swap participant,” “security-based swap dealer,” and “major security-based swap participant” under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).

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