CFTC Issues a Final, Time-Limited Exemptive Order and Proposes Further Guidance Regarding Cross-Border Regulation of Swaps
31 December 2012
Mayer Brown Legal Update
The US Commodity Futures Trading Commission has issued a release containing a final exemptive order and proposing for public comment additional guidance regarding the cross-border regulation of swaps. The order, which took effect on December 21 and expires on July 12, 2013, permits swap dealers (“SDs”) and major swap participants (“MSPs”) who are not “US persons,” as well as non-US branches of SDs and MSPs who are US persons, to delay compliance with certain CFTC regulatory requirements. The order adopts a revised interim definition of US person and, among other changes to the SD de minimis and MSP threshold calculations for non-US persons, includes a welcome scaling back of certain aggregation requirements. The additional cross-border guidance includes a proposed alternative definition of US person and an alternative approach to the aggregation requirement for a non-US person’s SD de minimis calculations (each of which is different from the version adopted on an interim basis in the order). Public comments on the proposed guidance will be due 30 days after publication in the Federal Register.