CFTC Delays Reduction in Swap Dealer De Minimis Exception Threshold

On October 13, 2016, the Commodity Futures Trading Commission approved an Order delaying for one year the reduction of the threshold for determining whether an entity constitutes a "swap dealer" for purposes of the U.S. Commodity Exchange Act.  Currently, persons are not considered to be swap dealers unless their swap dealing activity in aggregate gross notional amount measured over the prior 12-month period exceeds a de minimis threshold of $8 billion.  This threshold had been scheduled to automatically decline to $3 billion on December 31, 2017, but the Order extended that date to December 31, 2018, absent further action from the CFTC.  Read more here.

CFTC Expands Swap Clearing Requirement

On September 28, 2016, the Commodity Futures Trading Commission unanimously approved the expansion of currencies of interest rate swaps subject to mandatory clearing under the U.S. Commodity Exchange Act. Subjecting standardized swaps to central clearing is intended to decrease risk in the financial system and has been a primary goal of global regulators for several years.  Read more here.

ISDA Publishes White Paper on Future of Derivatives Processing and Market Infrastructure

In September 2016, the International Swaps and Derivatives Association, Inc. published a wide-ranging white paper entitled "The Future of Derivatives Processing and Market Infrastructure."  The white paper proposes a "path forward" from the new regulatory ecosystem created in response to the financial crisis and the resulting compliance burden on market participants.  Read more here.