The CFTC has approved, by a 4 to 1 vote, an exemptive order providing time-limited relief from certain cross-border applications of the swaps provisions of Title VII of the Dodd-Frank Act and the CFTC’s regulations.
The purpose of the order is to foster an orderly phase in to the new swaps regulatory regime and to provide market participants greater certainty regarding their obligations with respect to cross-border swap activities.
Under the exemptive order, a non-U.S. person that registers with the CFTC as a swap dealer (SD) or major swap participant (MSP) may delay compliance with certain entity-level requirements adopted under the Dodd-Frank Act, and non-U.S. SDs and MSPs and foreign branches of U.S. SDs and MSPs may delay compliance with certain transaction-level requirements.
The order also includes a definition of the term “U.S. person” which will apply for purposes of the order.