Alert November 16, 2010

CFTC Proposes New Privacy and Data Security Rules under the Dodd-Frank Act

Under the authority of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFTC issued two rule proposals relating to the privacy and data security of consumer information.  The first rule proposal would extend existing CFTC requirements (17 CFR Part 160) adopted pursuant to the Gramm-Leach-Bliley Act (the “GLBA”), including information sharing requirements, to swap dealers and major swap participants, which fall within the CFTC’s regulatory authority under Title VII of the Dodd-Frank Act.  The second rule proposal would introduce limits on the use for marketing purposes of certain consumer information received from affiliated entities, a rule similar to the affiliate marketing rules issued by other financial regulators (as discussed in the October 27, 2009 Alert).  The CFTC envisions the affiliate marketing rule becoming effective on July 21, 2011 and the GLBA rule no earlier than that date.