Alert January 04, 2011

CFTC Issues Rule Proposal Regarding Confirmation, Portfolio Reconciliation and Portfolio Compression for Swap Dealers and Major Swap Participants

The CFTC issued a release proposing rules implementing the provisions of Section 731 of the Dodd-Frank Act, relating to swap confirmation, portfolio reconciliation, and portfolio compression for swap dealers and major swap participants.  The proposed rules would prescribe standards for the timely and accurate confirmation of swaps and would require the reconciliation and compression of swap portfolios.  Comments on the proposals are due by February 28, 2011.