CFTC approved two proposed rules under its swaps regime. One of the proposed rules is related to capital requirements for swap dealers, or SDs, and major swap participants while the other proposed rule concerns amendments to the swap clearing requirement exemption for inter-affiliate swaps.
Capital Requirements for Swap Dealers and Major Swap Participants—CFTC is reopening the comment period and requesting additional comment (including potential modifications to proposed rule language) on proposed regulations and amendments to the existing regulations to implement sections 4s(e) and (f) of the Commodity Exchange Act, as added by section 731 of the Dodd-Frank Act. Section 4s(e) requires the CFTC to adopt capital requirements for swap dealers and major swap participants that are not subject to capital rules of a prudential regulator. Section 4s(f) requires CFTC to adopt financial reporting and recordkeeping requirements for swap dealers and major swap participants. CFTC is reopening the comment period and soliciting further comment on proposed capital and financial reporting rules for swap dealers and major swap participants as well as related proposed amendments to the existing capital rules for futures commission merchants providing specific market risk and credit risk capital deductions for swaps and security-based swaps entered into by the futures commission merchants. Comments on this proposal must be received on or before March 03, 2020.
Amendments to the Swap Clearing Requirement Exemption for Inter-Affiliate Swaps—CFTC is proposing revisions to the regulation that exempts certain affiliated entities within a corporate group from the swap clearing requirement under the applicable provision of the Commodity Exchange Act. The revisions concern the anti-evasionary condition that swaps subject to the clearing requirement entered into with unaffiliated counterparties either be cleared or be eligible for an exception to or exemption from the clearing requirement. Specifically, the revisions would make permanent certain temporary alternative compliance frameworks intended to make this anti-evasionary condition workable for international corporate groups in the absence of foreign clearing regimes determined to be comparable to U.S. requirements. Comments on this proposal must be received on or before February 21, 2020.
- Proposal on Capital Requirements for Swap Participants
- Amendments to the Swap Clearing Requirement Exemption
Comment Due Date: March 03, 2020/February 21, 2020
Keywords: Americas, US, Banking, Securities, Capital Requirements, Swap Dealers, Dodd Frank Act, Reporting, Swap Clearing, Commodity Exchange Act, Swaps, Inter-Affiliate Swaps, CFTC
Previous ArticleHKMA Report on Artificial Intelligence Application in Banking
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.