On January 11, 2012, the CFTC approved a framework for registering swap dealers and major swap participants under Dodd-Frank and outlined their duties to swap counterparties. Because many rules applicable to swap dealer business conduct and compliance have not yet been finalized, the CFTC created a registration process that permits—and soon will require—provisional registration with rolling compliance obligations that lead to full registration. Voluntary registration could begin as early as three months from now, with mandatory registration possible a few months later. This contrasts with the SEC which has not finalized how or when it plans to require registration of security-based swap dealers and major security-based swap participants.
Swap dealers and MSPs need to evaluate their registration readiness and develop a strategy for registration and compliance with the numerous operational, disclosure and conduct requirements associated with registration.