On April 18 the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) approved a final rule defining the terms “swap dealers,” “major swap participants,” and “eligible contract participants.” Many market participants were pleased that the regulators appeared to have listened to their concerns and defined the terms “swap dealers” and “major swap participants” in such a way that will not capture the vast majority of derivatives end users. The final rule provided less comfort to small end users, however, who may find that they will no longer be able to enter into over-the-counter derivative transactions because they do not qualify as “eligible contract participants.” – Major Swap Participants (“MSPs”): The final rule appears to be consistent with Congressional intent to focus the MSP definition on entities whose derivatives use is so material that the failure of…

Read More...

Key Swap Dealer/MSP Rule Delayed…Again Today the CFTC and SEC delayed the vote on the final rule for the entity definitions that had been scheduled for this Thursday, February 23rd. It’s possible that the rule could be voted on and approved on March 7th or 9th. We’ll update you all as soon as we hear more. Stay tuned. This is probably the most important rule to be released yet. [And if you can’t stay tuned, give us a call and we’ll give you give you a summary.] PRESS RELEASE The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, February 23, 2012, at 9:30 a.m. EST, on the following topics: Final Rule: Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant” “Major Security-Based Swap Participant” and “Eligible Contract Participant;” Final Rule: Swap Dealer and Major…

Read More...