Guide to Eligible Contract Participant Definition After October 12, 2012, only Eligible Contract Participants (“ECPs”) are permitted by law to enter into OTC derivatives transactions. Non-ECPs will no longer be able to use the line of business exemption. Eligible Contract Participants generally include: Entities with $10 million in total assets Entities with a guarantor that is an entity with $10 million in assets Entities with a net worth of at least $1 million and are hedging Individuals with “amounts invested on a discretionary basis” that exceed $10 million, or $5 million if hedging If an entity by itself does not qualify as an ECP, it may nonetheless qualify IF all of the following conditions are met: it must be entering into a swap (i.e., an interest rate, FX or commodity derivative and not a credit or equity derivative); it must…

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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…

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