KEYWORDS: central counterparties, CFTC, collective investment vehicle, Commodity Futures Trading Commission, Dodd-Frank Act, Hedge Fund Regulation, major swap participant, offshore funds, substituted compliance, swap dealer, swaps
Nichole Jordan, Michael C. Patanella, Jack Katz
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.