CFTC Proposes to Amend the Clearing Requirement to Help End-Users
CFTC unanimously approved a swap clearing requirement proposed rule that would reduce unnecessary burden on bank holding companies, savings and loan holding companies, and community development financial institutions. The deadline for submission of comments is 60 days after the proposals have been published in the Federal Register.
The proposal would exempt, from the clearing requirement, swaps entered into by bank holding companies and savings and loan holding companies with consolidated assets of USD 10 billion or less and community development financial institutions that meet certain conditions. The proposed rule is consistent with a 2016 staff no-action letter that provides relief from the clearing requirement swaps entered into by bank holding companies and savings and loan holding companies with consolidated assets of USD 10 billion or less. The proposal is also consistent with a 2016 staff no-action letter that provides relief from the clearing requirement swaps entered into by community development financial institutions that are certified by the U.S. Department of Treasury, provided that such institutions only engage in swaps within specific product classes and meet certain other limitations related to the number of swaps executed per year and an aggregate notional value cap.
This proposal is a direct result of CFTC Chairman J. Christopher Giancarlo’s agency-wide Project KISS initiative, which asked for recommendations from the public to make existing CFTC regulations simpler, less burdensome, and less costly. Project KISS also included a review of all CFTC rules to reduce regulatory burdens and costs for participants in the markets the agency oversee.
Related Link: Federal Register Notice
Comment Due Date: October 29, 2018
Keywords: Americas, US, Banking, Clearing Requirement, Swaps, Project KISS, CFTC
Previous Article
OSFI Proposes Revisions to Leverage Ratio Disclosure RequirementsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.