Saturday, December 22, 2012

CFTC Buys Swaps Dealers More Time for Compliance

On December 18, 2012, the CFTC issued an interim final rule extending the compliance date for the new Dodd-Frank business conduct standards and documentation requirements for swap dealers and major swap participants. The rule extends the deadline for the business conduct standards and certain documentation requirements to May 1, 2013. The compliance date for the other documentation requirements has been extended to July 1, 2013. This change means that swap dealers will now have until May 1, 2013 to amend their master swap agreements and other counterparty documentation rather than the previous December 31, 2012 deadline. By extending the compliance date, the CFTC has bought swap dealers and major swap participants four more months to bring their agreements and documentation in line with the ISDA's Dodd-Frank Protocol.