CFTC Revises Capital and Financial Reporting Rules for Swap Dealers

The CFTC adopted amendments to rules that impose minimum capital requirements and financial reporting obligations on swap dealers and major swap participants. (See related coverage.)

The amendments were adopted as proposed (with two revisions to the timing for the submission of reports.)

The rule will go into effect 30 days from the date of publication in the Federal Register.

Statements

CFTC Commissioner Kristin N. Johnson stated that the final amendments "buttress the financial condition reporting requirements, as the Commission retains 'visibility and insight into the business and financial health of our registrants and enables us to require corrective action and prevent a failure of a single entity or group of entities or segment of the derivatives market, which could raise system risk concerns.'"

CFTC Commissioner Caroline D. Pham supported the final rule, but argued that the CFTC "should have taken an evergreen approach to SEC harmonization of the filing time period." She said the CFTC should have made the deadline "on the date Form X–17A–5 FOCUS Report Part IIC is due to be filed with the [SEC]."