Open Meeting on Two Final Rules and One Proposal (Final and Proposed Rules)
Open Meeting
CFTC Press Release 6148-11
The CFTC held a public meeting on, December 5, 2011 on the following topics:
(1) Final Rule on Investment of Customer Funds and Funds Held in an Account for Foreign Futures and Options Transactions;
(2) Further Notice of Proposed Rulemaking on Process for Making a Swap Available to Trade under Section 2(h)(8) of the Commodity Exchange Act
(3) Final Rule on Registration of Foreign Boards of Trade
The CFTC unanimously approved items (1) and (3), and item (2) by a vote of 4-1.
Highlights of the CFTC's actions include:
Rule 1.25 Changes
The changes in Rule 1.25 limit the scope of investments FCMs can make using customer funds. Under the new restrictions, FCMs are banned from entering into certain in-house transactions, commonly referred to as in-house repurchase agreements.
Proposed Process for Making a Swap Available to Trade
The proposed rule would implement a process for DCMs and swap execution facilities to make swaps available to trade. Under the proposal, DCMs and SEFs would be required to submit any determination that a swap is available for trading to the CFTC either for approval or under self-certification procedures.
Registration of Foreign Boards of Trade
The rule replaces the existing process of staff-issued no-action relief, and identify criteria that an FBOT will have to meet to become registered to provide direct access from the U.S. In order to directly access U.S. market participants, the FBOTs and their clearing organizations must be subject to comparable and comprehensive supervision and regulation in their home countries and meet certain standards in the rule.
Links to the Commissioner's Opening Statements and the Chairman's Statements on Support of the Dodd-Frank Rulemakings and Additional Information (Fact Sheets and Questions and Answers related to each rulemaking) may be found by clicking the Open Meeting tab above.
Cross References: See three rule releases immediately below.