08.04.2011
|
Updates
CFTC Issues New Rules Implementing a New Framework for Approving New Products and Rule Changes Submitted by Registered Entities.
On Wednesday, July 27, 2011, the Commodity Futures Trading Commission (the “CFTC”) adopted regulations and amended existing regulations to implement Sections 717, 718, 723, 728, 733, 745, 803, 804, and 806 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act'”). The CFTC amended its existing regulations governing the submission of new products, rules, and rule amendments. The final regulations establish the Commission's procedural framework for the submission of new products, rules, and rule amendments by designated contract markets, derivatives clearing organizations, swap execution facilities, and swap data repositories. In addition, the final regulations prohibit event contracts involving certain excluded commodities, establish special submission procedures for certain rules proposed by systemically important derivatives clearing organizations, and stay the certifications and the approval review periods of novel derivative products pending jurisdictional determinations.
The OCC Issues Final Rule on Retail Forex Transitions.
On Thursday, July 28, 2011, the Office of the Comptroller of the Currency (the “OCC”) adopted a final rule pursuant to the Commodity Exchange Act as amended by Section 742 of the Dodd-Frank Act. The rule authorizes national banks, Federal branches and agencies of foreign banks, and their operating subsidiaries to engage in certain off-exchange transactions in foreign currency with retail customers (known as “retail forex transactions”). The rule also establishes various requirements with which banks must comply to conduct such transactions. The requirements are similar to those recently adopted by the CFTC rules and proposed by the Federal Reserve Board.
The Fed Proposes Rules on Retail Forex Transitions.
On Thursday, July 28, 2011, the Federal Reserve Board announced it is seeking comment on a proposal that sets standards for banking organizations regulated by the Federal Reserve that engage in retail forex transactions. The proposal, issued pursuant to the Commodity Exchange Act as amended by Section 742 of the Dodd-Frank Act, outlines requirements for disclosure, recordkeeping, business conduct, and documentation for retail foreign exchange transactions. Institutions engaging in such transactions will be required to identify themselves to their regulator and to be well capitalized. They will also be required to collect margin for retail foreign exchange transactions. The requirements are similar to those recently adopted by the CFTC and OCC.
Read the Federal Reserve Board press release
CFTC Proposes New Rules on Customer Clearing Documentation and Timing of Acceptance for Clearing.
On Monday, August 1, 2011, the CFTC proposed rules to implement new statutory provisions enacted by Title VII of the Dodd-Frank Act. The proposed rules address the documentation between a customer and a futures commission merchant that clears on behalf of the customer and the timing of acceptance or rejection of trades for clearing by derivatives clearing organizations and clearing members.
CFTC Proposes New Rules on Clearing Member Risk Management.
On Monday, August 1, 2011, the CFTC proposed rules to implement new statutory provisions enacted by Title VII of the Dodd-Frank Act. The proposed rules address risk management for cleared trades by futures commission merchants, swap dealers, and major swap participants that are clearing members.
© 2011 Perkins Coie LLP
