CFTC Revises Block Thresholds for Swap Transactions

The CFTC revised post-initial appropriate minimum block sizes and post-initial cap sizes for publicly reportable swap transactions. The revised thresholds will go into effect on December 4, 2023.

As previously covered, the CFTC provided no-action relief under Letter 22-03 to entities that fail to comply with the block and cap amendments before December 4, 2023, provided that the relevant persons comply with the regulations that were in effect for CFTC Rules Parts 43, 45, 46 and 49 as of January 1, 2021.

The CFTC began publishing post-initial minimum block sizes and post-initial cap sizes following amendments to Part 43 of CFTC Rules which, among other things, changed the "block trade" definition and updated the methodologies for calculating block thresholds and cap sizes (see previous coverage).