CFTC Open Meeting on One Final Rule and One Proposed Rule (Proposed and Final Rules)
Open Meeting
CFTC Press Release 6184-12
The CFTC held a public meeting on February 23, 2010 to consider one final rule and one proposed rule on the following topics:
(1) Final Rule: Swap Dealer and Major Swap Participant Recordkeeping and Reporting, Duties, and Conflicts of Interest Policies and Procedures; Futures Commission Merchant and Introducing Broker Conflicts of Interest Policies and Procedures; Swap Dealer, Major Swap Participant, and Futures Commission Merchant Chief Compliance Officer; and
(2) Proposed Rule: Procedures to Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades; Further Measures to Protect the Identities of Parties to Swap Transactions (Reproposal).
The CFTC approved both agenda items by a 3-2 vote. Highlights of the CFTC's actions include:
SD and MSP Recordkeeping and Reporting, Duties, and Conflicts of Interest Policies and Procedures; FCM and Introducing Broker Conflicts of Interest Policies and Procedures; SD, MSP, and FCM Chief Compliance Officer.
The final rules set forth daily trading record requirements, which include trade information related to pre-execution, execution, and post-execution data. The final rule requires swap dealers and major swap participants to ensure (1) that they preserve all information necessary to conduct a comprehensive and accurate trade reconstruction for each swap, and (2) that they maintain each transaction record as in a form identifiable and searchable by transaction and counterparty.
This rule requires swap dealers and major swap participants to maintain recordings of telephone calls and other communications created in the normal course of its business, but would not establish an affirmative new requirement to create recordings of all telephone conversations if the required recordkeeping is met through other means, such as electronic messaging or trading.
Procedures to Establish Appropriate Minimum Block Sizes for Large Notional Off-Facility Swaps and Block Trades; Further Measures to Protect the Identities of Parties to Swap Transactions
The further notice of proposed rulemaking proposes to define the criteria for grouping swaps into separate swap categories and to establish methodologies for setting appropriate minimum block sizes for each swap category. The proposal rules also set forth additional measures under part 43 of the Commission's regulations to prevent the public disclosure of the identities, business transactions and market positions of swap market participants.