Aug 29, 2013 | Uncategorized

Trading Swaps–CFTC Issues Final Rules

Three rules have recently been finalized under the Dodd-Frank Act regarding trading of swaps on organized facilities.

  • SEF Core Principles and Requirements–These outline the core principles and other requirements for swap executions facilities (SEFs).  the rules became effective on August 5, 2013.  However, it establishes a 180 day review period for SEF applications submitted after that date.  Swap traders have until October 2, 2013 to comply with the new rules.  To view the final rules click here.
  • The Mat Rule (aka Make Available to Trade)–This outlines the process for a designated contract market (DCM) or SEF to make a swap available to trade under Section 2(h)(8) of the CEA.  It also provides the compliance and implementation schedule for swap transactions.  This rule became effective August 5th as well.  To view the final rule click here.
  • Swaps Block Rule.  This rule outlines the procedures that establish minimum block sizes for large notional off-facility swaps and block trades.  This rule became effective July 30th.  To view this rule click here.