Commissioners yesterday voted 2-to-1 to pass margin rules for uncleared swaps. The rules are broadly in line with those passed by the Prudential Regulators on 30 October 2015. Initial margin (IM) will be exchanged between covered swap entities (CSEs) and SDs, MSPs and financial end-users, subject to the $8bn gross notional exposure. IM may be […]

On 2 November 2015, the CFTC’s Market Risk Advisory Committee gathered to discuss the recommendations of its CCP Risk Management Subcommittee, which is dedicated to CCPs’ preparations for the default of a significant clearing member. The Committee conducts public meetings, submit reports and presents recommendations to the CFTC on matters relating to evolving market structures and […]

CFTC Chairman Timothy Massad delivered the keynote speech to yesterday’s meeting of the World Federation of Exchanges. In a slight departure from his consistent themes of the superlative work of the Agency he chairs, its budget woes and the social utility of derivatives markets, Chairman Massad highlighted different aspects of the relationship between regulation and […]

The CFTC has issued a fourth no-action letter, extending relief for certain package swaps. Regulations 37.9 and 37.3(a)(2) will not be enforced until expiry of the relief on 15 November 2016 for the following package combinations: MAT Swap/New Issuance Bond- an MAT swap and a primary market bond MAT Swap/Futures- may include Treasury/Eurodollar futures MAT […]

The CFTC has issued additional time-limited no-action relief from electronic reporting requirements in the ownership and control final rule (OCR Rule). The OCR Rule mandates the electronic submission of trader identification/market participant data, requiring both new and updated forms. No-action Letter 15-51 is the third postponement of enforcement for the OCR Rule and extends relief […]

The CFTC seeks comment on a proposed rule to modify which Part 45 data fields are regarded  as “material” under Regulation 23.502. Readers will doubtless recall CFTC No-Action Letter  13-31, granting relief as to the “material terms” of a swap for the purposes of portfolio  reconciliation; the proposal is to amend then codify and replace […]

The CFTC has published its proposed amendments to Part 45 Reporting Rules in the Federal Register. The proposal’s 166 pages are a partial answer to the panoply of concerns raised in the March 2014 questionnaire, which highlighted inconsistencies between SDRs, onerous data standardisation requirements, ambiguity for end-users and duplication of data throughout the clearing process, […]

CFTC Commissioners voted unanimously yesterday to propose a modified rule that would apply margin requirements for uncleared swaps in the context of cross-border transactions. The new proposal is in response to the recent practice of US banks “de-guaranteeing” their overseas affiliates, an attempt to place these entities beyond the CFTC’s legislative reach. The proposal extends […]

The CFTC’s Division of Market Oversight yesterday announced their issuance of No-Action Letter 15-38. The letter extends relief for SDs and MSPs from compliance with reporting obligations under Rule 45.4(b)(2(ii). The rule requires SD/MSPs to provide an SDR with continuing valuation data for cleared swaps. ISDA repeated its case that establishing connections to SDRs is […]