03.17.2011

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Updates

CFTC Proposes Regulation Amendments regarding Registration of Intermediaries

On Wednesday, March 9, 2011, the Commodity Futures Trading Commission proposed amendments to its regulations regarding the registration of intermediaries.  These amendments are in-line with requirements under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").  The amendments incorporate references into the regulations to swap dealers, swap execution facilities, and major swap participants.

Read the CFTC proposed regulation amendments

CFTC Proposes Requirements for Processing, Clearing, and Transfer of Customer Positions

On Thursday, March 10, 2011, the Commodity Futures Trading Commission proposed regulations establishing the time frame for swap dealers, major swap participants, futures commission merchants, swap execution facilities ("SEF"), and designated contract markets ("DCM") to submit contracts, agreements, or transactions to derivative clearing organizations ("DCO").  The proposed regulations implement requirements under Title VII of the Dodd-Frank Act.  Additionally, the proposed regulations allow for compliance with derivatives clearing organization DCO Core Principle C (Participant and Product Eligibility) in connection with standards for cleared products and the prompt and efficient processing of all contracts, agreements, and transactions submitted for clearing.  In addition, the CFTC is proposing related regulations implementing SEF Core Principle 7 (Financial Integrity of Transactions) and DCM Core Principle 11 (Financial Integrity of Transactions), requiring coordination with DCOs in the development of rules and procedures to facilitate clearing and a regulation to implement DCO Core Principle F (Treatment of Funds), requiring a DCO, upon customer request, to promptly transfer customer positions and related funds from one clearing member to another, without requiring the close-out and re-booking of the positions.

Read the CFTC proposed regulations

CPSS and IOSCO Issue Consultative Report on Principles for Financial Market Infrastructures

On Thursday, March 10, 2011, the Committee on Payment and Settlement Systems of the Bank for International Settlements and the Technical Committee of the International Organization of Securities Commissions issued a consultative report highlighting new international standards for payment, clearing, and settlement systems.  The stricter standards aim to ensure that the global financial markets are more robust and able to withstand threats.  The standards consist of 24 principles, which will replace three sets of currently existing standards when finalized.

Read the press release from the Bank of International Settlement

Senators Tester and Corker Introduce Bill to Delay Interchange Rule

On Tuesday, March 15, Senators Jon Tester (D-Mont.) and Bob Corker (R-Tenn.) introduced a bill that, if enacted, would delay the Federal Reserve's debit-card interchange rules, commonly known as the Durbin Amendment, by 2 years.  The bill, or the Debit Interchange Fee Study Act of 2011, requires the Federal Reserve, the FDIC, the Office of the Comptroller of the Currency, and the National Credit Union Administration to conduct research and jointly submit a report to the Senate Banking Committee and the House Financial Services Committee on the impact of regulating debit interchange transaction fees.  This bill has, predictably, caused a great flurry of activity by the retail industry, which was a major beneficiary of the interchange regulation proposed by the Durbin Amendment.

© 2011 Perkins Coie LLP


 

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