Business Conduct Rules for Swaps

    January 2012

    The Dodd-Frank Wall Street Reform and Consumer Protection Act installed the U.S. Commodity Futures Trading Commission (CFTC) as the primary regulator of the over-the-counter swaps and derivatives markets. The Dodd-Frank Act required that the CFTC establish business conduct standards rules for swap dealers and other major swap market participants to govern their dealings with end-user counterparties (end-users) on swaps and other derivative transactions, including heightened standards for all governmental entities, certain employee benefit plans and endowments (Special Entities). On January 11, 2012 the Commissioners of the CFTC voted to finalize the business conduct standards applicable to swap dealers (the Rules). The Rules will be effective 60 days after their publication in the Federal Register, but the exact publication date has not yet been provided.

    This Squire Sanders publication summarizes what Special Entities might expect as a result of the enactment of the Rules.