AIMA

Dodd-Frank Act Title VII

 

On 17 July 2010, US President Obama enacted the Dodd-Frank Act into law. 

Title VII of the Act creates new requirements for the trading, clearing and reporting of the details of ‘swap’ and ‘security-based-swap’ contracts. 

Responsibility for the implementation of Title VII, including significant amounts of regulatory rulemaking, is divided among the Commodity Futures Trading Commission (CFTC), which is responsible for the regulation of ‘swaps’ and the Securities and Exchange Commission (SEC), which is responsible for the regulation of ‘security-based-swaps’. 

Title VII rulemaking has included proposed rules on:

• the swap contracts that must be cleared by a derivatives clearing organization (DCO);

• the swap contracts that must be traded exclusively on a designated contract market or a new type of a trading venue, a ‘swap execution facility’ (SEF);

• swap clearing documentation;

• the definition of ‘swap’, ‘security-based-swap’ and ‘major swap participant’ (among other definitions);

• segregation of client collateral provided for cleared and uncleared swaps;

• how Title VII rules will apply to non-US parties and to trading outside of the US; and

• phased implementation of the clearing and trading obligations.

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Key legislative documents

Dodd-Frank Wall Street Reform and Consumer Protection Act 2010

CFTC Dodd-Frank Act Final Rules

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Relevant consultations

CFTC Further Notice of Proposed Rulemaking - Procedures To Establish Appropriate Minimum Block Sizes for Large Notional Off-facility Swaps and Block trades (March 2012)

Swap Transaction Compliance and Implementation Schedule: Clearing and Trade Execution Requirements under Section 2(h) of the CEA (September 2011)

Customer Clearing Documentation and Timing of Acceptance for Clearing (August 2011)

Acceptance of Public Submissions for a Study on International Swap Regulation Mandated by Section 719(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (July 2011)

Commissioner O'Malia letter: Review of Swaps for Mandatory Clearing under Section 723 of the Dodd-Frank Act (July 2011)

Effective Date for Swap Regulation (June 2011)

Determination of Foreign Exchange Swaps and Foreign Exchange Forwards Under the Commodity Exchange Act (May 2011)

Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (April 2011)

Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant” and “Eligible Contract Participant” (December 2010)

Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy (December 2010)

Protection of Cleared Swaps Customers Before and After Commodity Broker Bankruptcies  (December 2010)

Process for Review of Swaps for Mandatory Clearing  (November 2010)

Agricultural Swaps (September 2010)

Definitions Contained in Title VII of Dodd-Frank Wall Street Reform and Consumer Protection Act (August 2010) 

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AIMA documents

Process for a Designated Contract Market or Swap Execution Facility To Make a Swap Available To Trade (February 2012)

Swap Transaction Compliance and Implementation Schedule (November 2011)

Customer Clearing Documentation and Timing of Acceptance for Clearing (September 2011)

Study on International Swap Regulation (September 2011)

Review of Swaps for Mandatory Clearing (September 2011)

Uncleared swap margin - further submission (July 2011)

Proposed temporary relief orders (July 2011)

Determination of Foreign Exchange Swaps and Foreign Exchange Forwards under the Commodity Exchange Act (June 2011)

Uncleared swap margin (June 2011)

Phased implementation of Dodd-Frank Act rules (June 2011)

Further Swaps Definitions (February 2011)

Protection of Collateral of Counterparties to Uncleared Swaps (January 2011)

Protection of Cleared Swaps Customers Before and After Commodity Broker Bankruptcies (January 2011)

Process for Review of Swaps for Mandatory Clearing (December 2010)

Request for comments on agricultural swaps (October 2010)

Request for comment on Definitions Contained in Title VII of Dodd-Frank Wall Street Reform and Consumer Protection Act – File Number S7-16-10 - Definitions (September 2010)

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Other documents

Notice board: US Dodd-Frank Wall Street Reform and Consumer Protection Act