CFTC Sets Comment Deadline on Comparability Determination for German and French Capital Requirements

The CFTC set a comment deadline of August 28, 2023 on an application submitted by the Institute of International Bankers, ISDA and SIFMA to determine whether German and French capital and financial reporting requirements are comparable to the CFTC’s requirements for swap dealers.

As previously covered, a determination of substituted compliance would include:

• the scope and objective of relevant capital and financial reporting requirements;
• outcomes of comparable requirements with the CFTC’s corresponding financial reporting and capital requirements;
• the ability to supervise and enforce compliance; and
• a memorandum of understanding with the CFTC, if relevant.

The proposed order would allow swap dealers in France and Germany to satisfy capital requirements under CEA Sections 4s(e) ("Registration: Capital and margin requirements") and (f) ("Reporting and Recordkeeping") and CFTC Regulations 23.101 ("Minimum financial requirements for swap dealers and major swap participants") and 23.105 ("Financial recordkeeping, reporting and notification requirements for swap dealers and major swap participants") by complying with relevant requirements under EU laws and regulations.