Monday, January 2, 2012

Implementation of Dodd Frank Act Delayed till at least July 16th, 2012

Right before they left for the holidays, the CFTC slipped in a piece of legislation extending the implementation of Title VII of the Dodd Frank Act from taking effect on December 31, 2011 until July 16th, 2012.  Title VII of the Dodd Frank Act is one of the most crucial parts of the bill, dealing with the all allusive regulation of over-the-counter swaps markets.  While we at SD didn't anticipate implementation on December 31st, we wonder how long it can possible take to define the term "swap"?

17 CFR Chapter 1
Amendment to July 14, 2011 Order for
Swap Regulation
AGENCY: Commodity Futures Trading
ACTION: Final order.
SUMMARY: On October 25, 2011, the
Commodity Futures Trading
Commission (‘‘CFTC’’ or the
‘‘Commission’’) published in the
Federal Register a Notice of Proposed
Amendment (‘‘Notice’’) to extend the
temporary exemptive relief the
Commission granted on July 14, 2011
(‘‘July 14 Order’’) from certain
provisions of the Commodity Exchange
Act (‘‘CEA’’) that otherwise would have
taken effect on the general effective date
of title VII of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (‘‘the Dodd-Frank Act’’)—July 16,
2011. This final order extends the July
14 Order with certain modifications.
Specifically, it extends the potential
latest expiration date of the July 14
Order from December 31, 2011 to July
16, 2012
; and adds provisions to
account for the repeal and replacement
(as of December 31, 2011) of part 35 of
the Commission’s regulations.
DATES: This final order will be effective
on December 23, 2011.