New CFTC rules on swaps challenge offshore funds (Grant Thornton)

September 2013

KEYWORDS: CFTC, Commodity Futures Trading Commission, Dodd-Frank Act, Hedge Fund Regulation, collective investment vehicle, major swap participant, central counterparties, swaps, swap dealer, substituted compliance, offshore funds

Authors:

Nichole Jordan, Michael C. Patanella, Jack Katz

Organizations:
  • Grant Thornton

Summary:

The Commodity Futures Trading Commission (CFTC) issued its final interpretive guidance in mid-July for cross-border swap regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The new rules were accompanied by an exemptive order postponing enforcement of certain provisions.

The new guidance expands upon the swap dealer and market swap participant provisions in the Jan. 7, 2013, order and brings some clarity to cross-border swap oversight. But it also adds complexity and raises new questions for industry participants – especially offshore funds.

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