The CFTC approved interim final rules delaying the compliance dates for certain business conduct and documentation requirements applicable to swap dealers and major swap participants. Additionally, the CFTC voted 5-0 to approve the interim final rules, which will become effective immediately upon publication in the Federal Register. The CFTC also indicated that it will consider any comments received during a 30-day period following publication of the interim final rules and may revise the rules based on comments received. The rulemaking comes in response to requests from a variety of market

The SEC Enforcement Division's Asset Management Unit Chief, Bruce Karpati, delivered a speech on current hedge fund enforcement priorities before the Regulatory Compliance Association. See below for topics included in his speech: Development of specialized enforcement units within the SEC, including one focused on hedge funds; The Risks to Hedge Fund Investors, particularly "retail" investors, and potentially greater worries as a result of the general advertising permitted by the JOBS Act; The Operating Model of Alternative Investment Vehicles (temptation to boost fees by showing high returns

On December 13, 2012, efforts to pass S. 3637 – which would have extended the Transaction Account Guarantee ("TAG") program through the end of 2014 – failed in the Senate. The TAG program, established during the height of the financial crisis, will afford unlimited Federal deposit insurance coverage to non-interest transaction accounts, through December 31, 2012. As a result of the expiration of the TAG program, the insurance coverage amount for such deposits will revert to the standard maximum deposit insurance amount of $250,000, effective January 1, 2013, as originally scheduled.

The CFTC Division of Clearing and Risk ("DCR") issued the attached letter stating that DCR will not recommend that the CFTC take action against Japan Securities Clearing Corporation ("JSCC") for failing to register as a derivatives clearing organization ("DCO") under CEA Section 5b(a). The letter also states that the DCR will not recommend action against JSCC's qualified clearing participants, or a parent or affiliate of a JSCC qualified clearing participant, for failing to clear yen-denominated interest rate swaps subject to the CFTC's clearing requirement under CEA Section 2(h)(1)(A) through

The CFTC's Division of Swap Dealer and Intermediary Oversight ("DSIO") issued the attached no-action letter that provides swap dealers and major swap participants with relief from the requirement to disclose the pre-trade mid-market mark to counterparties in certain credit default swaps and interest rate swaps which are identified in said no-action letter (Covered Derivative Transactions). The disclosure requirements prescribed in Rule 23.431 state that a SD or MSP must disclose to certain counterparties the pre-trade mid-market mark of a swap. The no-action letter issued today by DSIO states