CFTC Proposes Rules on Swap Clearing and Capital Requirements for SDs
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.
Related Links
- 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
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Previous Article
HKMA Report on Artificial Intelligence Application in BankingRelated Articles
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA Publishes Report on Asset Encumbrance of Banks in EU
EBA published the annual report on asset encumbrance of banks in EU.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB Letter Sets Out Strategies to Address Issue of Nonperforming Loans
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.