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
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.