SIFMA has provided two "important and time sensitive" additional comments to the IRS and Treasury with respect to FATCA. These comments supplement SIFMA's original comments that were made on April 30. First, SIFMA is concerned that the proposed FATCA regulations could be interpreted to require withholding by brokers on the purchase of securities from non compliant FFIs rather than by brokers effecting sales. They note that while brokers effecting sales have systems in place for backup withholding if their customer does not provide a W-9, brokers representing purchasers lack such a system and

The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a letter that it will not recommend that the CFTC take enforcement action against any person for failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of CFTC Rule 1.3(ggg)(4) (which relates to the dealer registration requirement), certain ag and non-financial swaps. Any carved-out swap must meet the following three conditions: references an exempt commodity or agricultural commodity; is executed prior to December 31, 2012;and is either

The CFTC Division of Swap Dealer and Intermediary Oversight (DSIO) today announced the issuance of a no-action letter providing for a waiver procedure for associated persons of swap dealers that would, in the absence of such a procedure, have been prevented from working in the swaps business because they were subject to statutory disqualification. Under the terms of the letter, swap registrants will have to obtain a waiver with respect to such persons from the NFA. Lofchie Comment: Its obviously great that the CFTC issued this letter, as, in its absence, persons that had, for example, a drunk

The CFTC Division of Swap Dealer and Intermediary Oversight (DSIO) issued the attached letter providing temporary no-action relief from certain requirements in the de minimis exception from the definition of the term "swap dealer". The no-action relief would allow non-financial entities that are active in the physical energy markets to deal in swaps with special utility entities in an aggregate gross notional amount of up to $800 million per year and not be required to register as swap dealers. There are a number of conditions to the relief, including that the utility entity be using the swap

The CFTC Division of Swap Dealer and Intermediary Oversight (DSIO) issued the attached letter that clarifies, and significantly broadens, in light of the recent court decision regarding the CFTC’s position limits rule, the scope of the bona fide hedging exemption from the trading thresholds as applied to registered investment companies pursuant to Rule 4.5. Lofchie Comment: Although not remarked on in the letter, the CFTC's expansion of its registration requirement as to registered investment companies is also the subject of challenge in the courts. See news item. See: CFTC Letter 12-19