A CFTC final rule establishing new cross-border rules governing registration requirements applicable to swap dealers and major swap participants was published in the Federal Register.
As previously covered, the final rule will, among other things:
- add a new definition of "U.S. person" intended to be harmonized with SEA Rule 3a71-3;
- significantly change the counting requirements for non-U.S. subsidiaries of U.S. firms, including by adding a new category called "significant risk subsidiary";
- provide "full relief" for transactions "arranged, negotiated or executed" in the United States by non-U.S. persons;
- add a definition of "guarantee" that requires the "explicit recourse" of a counterparty to a U.S. person; and
- revise the standards for substituted compliance determinations.
The final rule will go into effect on November 13, 2020.
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