The Commodity Futures Trading Commission continued its progress this week toward a scheme for regulating global swap transactions.
The Commodity Futures Trading Commission (CFTC) continued its progress this week toward a scheme for regulating global swap transactions, culminating in a final framework for regulated cross-border activities of US and non-US swap dealers. The public meeting that took place on July 12th finalizing the CFTC’s cross-border guidance and providing more time for firms to conform came just before an important deadline – the temporary Exemptive Order under which many global swap dealers had been operating was set to expire the same day.
While the industry awaits the guidance’s specifics in the form of definitive language, the CFTC’s vote provides firms with important new clarity. Some key takeaways, based on the CFTC’s summary documents and the public meeting, include the following:
This Financial Services Regulatory Brief describes the approach taken by the CFTC in its final guidance and extension of relief, and provides context and perspective for global dealers as they press forward under the clarified regime.