Final Rule: Swap Dealer and Major Swap Participant Recordkeeping, Reporting, and Duties Rules; Futures Commission Merchant and Introducing Broker Conflicts of Interest Rules; and CCO Rules
Final Rule: Swap Dealer and Major Swap Participant Recordkeeping, Reporting, and Duties Rules; Futures Commission Merchant and Introducing Broker Conflicts of Interest Rules; and Chief Compliance Officer Rules for Swap Dealers, Major Swap Participants, and Futures Commission Merchants
Federal Register Publication Date: 04/03/2012
Summary: The CFTC adopted regulations to implement certain provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These regulations set forth reporting and recordkeeping requirements and daily trading records requirements for swap dealers (“SDs”) and major swap participants (“MSPs”). These regulations also set forth certain duties imposed upon SDs and MSPs registered with the CFTC with regard to: risk management procedures; monitoring of trading to prevent violations of applicable position limits; diligent supervision; business continuity and disaster recovery; disclosure and the ability of regulators to obtain general information; and antitrust considerations. In addition, these regulations establish conflicts-of-interest requirements for SDs, MSPs, futures commission merchants (FCMs), and introducing brokers with regard to firewalls between research and trading and between clearing and trading. Finally, these regulations also require each FCM, SD, and MSP to designate a chief compliance officer, prescribe qualifications and duties of the chief compliance officer, and require that the chief compliance officer prepare, certify, and furnish to the CFTC an annual report containing an assessment of the registrant’s compliance activities.