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    The interim final rule clarifies reporting obligations for swaps entered into after the Dodd-Frank Act but before swap data reporting rules take effect. It advises counterparties that reporting requirements will be implemented and that preserving certain swap data is implicit in those future reporting rules. The rule applies to all counterparties of these "transition swaps" and obligates them to preserve material data related to swap terms so it can be reported once rules are finalized. It aims to provide timely notice and avoid loss of valuable data, while limiting data retention burden.

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    Pest Qa

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    The interim final rule clarifies reporting obligations for swaps entered into after the Dodd-Frank Act but before swap data reporting rules take effect. It advises counterparties that reporting requirements will be implemented and that preserving certain swap data is implicit in those future reporting rules. The rule applies to all counterparties of these "transition swaps" and obligates them to preserve material data related to swap terms so it can be reported once rules are finalized. It aims to provide timely notice and avoid loss of valuable data, while limiting data retention burden.

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    The interim final rule clarifies reporting obligations for swaps entered into after the Dodd-Frank Act but before swap data reporting rules take effect. It advises counterparties that reporting requirements will be implemented and that preserving certain swap data is implicit in those future reporting rules. The rule applies to all counterparties of these "transition swaps" and obligates them to preserve material data related to swap terms so it can be reported once rules are finalized. It aims to provide timely notice and avoid loss of valuable data, while limiting data retention burden.

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    Download as PDF, TXT or read online from Scribd
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    78 views1 page

    Pest Qa

    Uploaded by

    MarketsWiki
    The interim final rule clarifies reporting obligations for swaps entered into after the Dodd-Frank Act but before swap data reporting rules take effect. It advises counterparties that reporting requirements will be implemented and that preserving certain swap data is implicit in those future reporting rules. The rule applies to all counterparties of these "transition swaps" and obligates them to preserve material data related to swap terms so it can be reported once rules are finalized. It aims to provide timely notice and avoid loss of valuable data, while limiting data retention burden.

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    of 1

    Commodity Futures Trading Commission

    Office of Public Affairs


    Three Lafayette Centre
    1155 21st Street, NW
    Washington, DC 20581
    www.cftc.gov

    Q & A – Interim Final Rule Regarding Reporting


    of Certain Post-Enactment Swap Transactions
    What is the goal of the proposed rulemaking?

    This interim final rule clarifies the reporting obligations of market participants with respect to swaps entered into on or
    after the date of enactment of the Dodd-Frank Act and prior to the effective date of swap data reporting rules
    implementing Section 2(h)(5)(B) of the Commodity Exchange Act, as amended (“transition swaps”). The rule does not
    impose a present reporting requirement, but rather is intended to advise potential counterparties that (1) reporting
    requirements applicable to transition swaps will be adopted by the Commission in a separate rulemaking pursuant to
    Section 2(h)(5)(B) of the Act; and (2) implicit in a reporting requirement is the obligation to preserve certain data pending
    implementation of the provisions of Section 2(h)(5)(B). The rule is codified in CFTC Regulation 44.03.

    What is an interim final rule? Who must comply with the interim final rule?

    An interim final rule permits an agency to adopt as final, for good cause shown, a rule that has not been subject to the
    Administrative Procedure Act’s mandated public notice and opportunity to comment. In an interim final rulemaking, the
    agency publishes the rule as final and concurrently solicits public comment (See 5 U.S.C. § 553(b)(3)(B)). An interim
    final rule is warranted in these circumstances by the necessity to provide timely notice to counterparties that they may
    become subject to a reporting requirement pursuant to Section 2(h)(5)(B) of the CEA and to advise with respect to the
    data that should be preserved with respect to such reporting. A delay in so advising affected persons likely will result in
    the loss of valuable data.

    This interim final rule applies to all counterparties to transition swaps.

    What obligations are imposed by the interim final rule?

    Although it has not yet proposed permanent rules implementing Section 2(h)(5)(B), the Commission believes that the
    reporting obligations imposed by that statutory provision became effective upon enactment of the Dodd-Frank Act.
    Accordingly, counterparties who are or may become subject to those obligations should be prepared to report swap data
    relating to transition swaps at such time as reporting is required under a permanent rule. While Section 2(h)(5) does not
    expressly require that counterparties retain data related to transition swaps, implicit in the reporting requirement
    established by this provision is the obligation to preserve data related to the terms of each transition swap so that it may
    be reported when permanent reporting rules implementing Section 2(h)(5)(B) are adopted by the Commission.

    The Commission is mindful that the data retention obligation may be perceived as burdensome, and in that regard the
    Note to Regulation 44.03 attempts to limit the data to material information that may be expected to assist the
    Commission in performing its oversight functions under the CEA. To ensure that important information relating to the
    terms of transition swaps may be preserved with minimal burden on counterparties, the Note specifically does not
    require any counterparty to a transition swap to create new records and permits records to be retained in their existing
    format. Similarly, the Note specifies that information not in the counterparty’s possession prior to the effective date of
    the interim final rule need not be reported.

    Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080

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