Second Amendment to July 14,2011 Order for Swap Regulation (CFTC)

See: 77 FR 28819

The CFTC issued a proposed exemptive Order that extends the effective date for certain provisions of the Dodd-Frank Act requiring the regulation of swaps until December 31, 2012, or until the Commission's rules and regulations go into effect, whichever is sooner, thus providing further transitional relief until the CFTC and SEC finalize key definitions including that for "swaps.' The Order modifies temporary exemptive relief previously granted in 2011 that twice extended the effective date of Title VII of the Dodd-Frank Act by providing another six-month extension of the effective date, this time from July 16, 2012 to December 31, 2012. The Order also narrows the scope of the relief previously granted by removing all references to entities terms (such as "swap dealer") in light of the joint in CFTC-SEC rulemaking further defining such terms issued on April 18, 2012; allows the clearing of agricultural swaps; and gives unregistered trading facilities (ECMs, EBOTs, and electronic trading facilities operating pursuant to CEA Sec. 2(d)(2)) that offer swaps for trading and that were required under Dodd-Frank to register as SEFs or DCMs by July of this year additional time to operate until the Commission finalizes rules with regard to SEFs.

Comments Due: Submit comments on or before May 30, 2012.

Cross References: 76 FR 42508 (Effective Date for Swap Regulation); 76 FR 80233 (Amendment to July 14,2011 Order for Swap Regulation); CEA Section 4(c); CFTC Rules Part 35; CFTC Rules 39.5, 40.2, 40.3, and 145.9; Dodd-Frank Act Sections 712, 721, and 754.

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie; Robert Zwirb.