Alert May 03, 2011

CFTC Proposes Capital Requirements for Swap Dealers and Major Swap Participants Not Subject to a Prudential Regulator

The CFTC proposed rule changes that would establish capital requirements and related financial condition reporting and recordkeeping requirements for swap dealers (“SDs”) and major swap participants (“MSPs”) that are not subject to prudential regulation by the FRB, OCC, FDIC, Farm Credit Administration or Federal Housing Finance Agency.  The proposal would also amend existing capital and financial reporting regulations for futures commissions merchants (“FCMs”) that also register as SDs or MSPs, and provide for supplemental FCM financial reporting relating to the segregation of swap customers’ funds.   Comments on the proposed rule changes must be received no later than 60 days after their publication in the Federal Register.