The CFTC and SEC have offered relief from Title VII requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act that would apply by law under Dodd-Frank to swap and security-based swap (SBS) transactions and to swap/SBS market participants as of July 16, 2011. Both agencies are granting exemptive relief directed at provisions that would, absent agency action, apply to swaps or SBS activities and market participants. The CFTC plans a December 31, 2011, sunset for its relief, while the SEC exemption does not expire on a specific date.
This targeted relief would not apply to all Title VII provisions, including provisions that are not automatically effective on July 16, that relate to anti-fraud or anti-manipulation, or that do not apply to swaps or SBS. The goal of both regulatory actions is to permit swap and SBS markets to continue to operate largely on a business as usual basis even with Title VII provisions in effect, until final derivatives regulations are in place and compliance is phased in.