Featured Product

    CFTC Consults on Cross-Border Application of Certain Swap Provisions

    January 08, 2020

    CFTC published a proposed rule addressing the cross-border application of certain swap provisions of the Commodity Exchange Act. The proposed rule addresses the cross-border application of the registration thresholds and certain requirements applicable to swap dealers and major swap participants and establishes a formal process for requesting comparability determinations for such requirements from CFTC. CFTC is proposing a risk-based approach that would advance the goals of the swap reform under the Dodd-Frank Act while fostering greater liquidity and competitive markets, promoting enhanced regulatory cooperation, and advancing the global harmonization of swap regulation. Comments must be received on or before March 09, 2020.

    The proposed rule addresses which cross-border swaps or swap positions a person would need to consider when determining whether it needs to register with CFTC as a swap dealer or major swap participant as well as related classifications of swap market participants and swaps. Additionally, CFTC is proposing exceptions from, and a substituted compliance process for, certain regulations applicable to registered swap dealers and major swap participants. The proposed rule would also create a framework for comparability determinations that emphasizes a holistic, outcomes-based approach that is grounded in the principles of international comity. Finally, the proposed rule would require swap dealers and major swap participants to create a record of their compliance with the proposed rule and to retain such records.

    CFTC has sought to target those classes of entities whose activities—due to the nature of their relationship with a U.S. person or U.S. commerce—most clearly present the risks addressed by the Dodd-Frank Act provisions and the related regulations covered by the proposed rule. The proposed rule is designed to limit opportunities for regulatory arbitrage by applying the registration thresholds in a consistent manner to differing organizational structures that serve similar economic functions or have similar economic effects. CFTC is mindful of the impact of its choices on market efficiency and competition as well as the importance of international comity when exercising its authority. CFTC believes that the proposed rule reflects a measured approach that advances the goals underlying swap dealer and major swap participant regulation, consistent with the statutory authority of CFTC, while mitigating market distortions and inefficiencies and avoiding fragmentation.

     

    Related Link: Federal Register Notice

    Comment Due Date: March 09, 2020

    Keywords: Americas, US, Banking, Securities, Cross-Border, Swaps, Commodity Exchange Act, Dodd Frank Act, Risk-Based Approach, Swaps Reform, CFTC

    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699