CFTC Issues Guidebook for Part 20 Reports

On Wednesday, December 7, 2011, the Commodity Futures Trading Commission ("CFTC") amended its regulations regarding the investment of customer segregated funds subject to CFTC Regulation 1.25 and funds held in an account subject to CFTC Regulation 30.7.  The amendments reflect the implementation of new statutory provisions enacted under Title IX of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The amendments address: certain changes to the list of permitted investments (including the elimination of in-house transactions), a clarification of the liquidity requirement, the removal of rating requirements, and an expansion of concentration limits including asset-based, issuer-based, and counterparty concentration restrictions.  They also address revisions to the acknowledgment letter requirement for investment in a money market mutual fund, revisions to the list of exceptions to the next-day redemption requirement for money market funds, the elimination of repurchase and reverse repurchase agreements with affiliates, the application of customer segregated funds investment limitations to 30.7 funds, the removal of ratings requirements for depositories of 30.7 funds, the elimination of the option to designate a depository for 30.7 funds, and certain other technical changes.

CFTC Sets the Effective Date for Swap Regulation

On Monday, December 19, 2011, the CFTC issued a Final Order regarding the effective date for certain swap regulations.  On July 14, 2011, the CFTC granted temporary exemptive relief from certain provisions of the Commodity Exchange Act that otherwise would have taken effect on July 16, 2011, the general effective date of title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  On October 25, 2011, the CFTC proposed to extend the exemptive relief beyond the December 31, 2011 expiration date.  Today’s Final Order extends the expiration date of the exemptive relief to as late as July 16, 2012.

Read the CFTC press release

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