The CFTC has approved a final rule to conform the CFTC’s existing intermediary registration rules to changes mandated by the Dodd-Frank Act. The final rule also is intended to create uniformity in treatment of previously regulated and newly regulated commodity interest transactions (for example swaps and futures) by registered intermediaries, such as futures commission merchants (FCM) and other registrants.
The final rule ensures that the intermediary registration process applies to new categories of registrants, such as swap dealers and major swap participants that were added by the Dodd-Frank Act. The final rule also expands an existing exemption from being registered as a FCM to foreign brokers and other foreign intermediaries that execute a swap transaction either bilaterally or on subject to the rules of a designated contract market or on subject a swap execution facility on behalf of non-U.S. persons.
The rule was passed via seriatim by a vote of 4 to 1.