2019-27116: Capital Requirements of Swap Dealers and Major Swap Participants

Summary

The Commodity Futures Trading Commission ("Commission" or "CFTC") is re-opening the comment period and requesting additional comment (including potential modifications to proposed rule language) on proposed regulations and amendments to existing regulations to implement sections 4s(e) and (f) of the Commodity Exchange Act ("CEA"), as added by section 731 of the Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") previously published in 2011 and re-proposed in 2016. Section 4s(e) requires the Commission to adopt capital requirements for swap dealers ("SDs") and major swap participants ("MSPs") that are not subject to capital rules of a prudential regulator. Section 4s(f) requires the Commission to adopt financial reporting and recordkeeping requirements for SDs and MSPs. The Commission is reopening the comment period and soliciting further comment on all aspects of the SD and MSP capital and associated financial reporting proposal from 2016, as well as related proposed amendments to existing capital rules for futures commission merchants ("FCMs") providing specific market risk and credit risk capital deductions for swaps and security-based swaps ("SBS") entered into by FCMs.

The agency’s own summary, as published.

What this changes

Amends 3 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

• 17 CFR 1 General Regulations Under the Commodity Exchange Act
• 17 CFR 23 Swap Dealers and Major Swap Participants
• 17 CFR 140 Organization, Functions, and Procedures of the Commission