CFTC Issues Guidebook for Part 20 Reports
On Wednesday, December 7, 2011, the Commodity Futures Trading
Commission ("CFTC") amended its regulations regarding the
investment of customer segregated funds subject to CFTC Regulation
1.25 and funds held in an account subject to CFTC Regulation 30.7.
The amendments reflect the implementation of new statutory
provisions enacted under Title IX of the Dodd-Frank Wall Street
Reform and Consumer Protection Act. The amendments address: certain
changes to the list of permitted investments (including the
elimination of in-house transactions), a clarification of the
liquidity requirement, the removal of rating requirements, and an
expansion of concentration limits including asset-based,
issuer-based, and counterparty concentration restrictions. They
also address revisions to the acknowledgment letter requirement for
investment in a money market mutual fund, revisions to the list of
exceptions to the next-day redemption requirement for money market
funds, the elimination of repurchase and reverse repurchase
agreements with affiliates, the application of customer segregated
funds investment limitations to 30.7 funds, the removal of ratings
requirements for depositories of 30.7 funds, the elimination of the
option to designate a depository for 30.7 funds, and certain other
technical changes.
Read the CFTC rule
CFTC Sets the Effective Date for Swap Regulation
On Monday, December 19, 2011, the CFTC issued a Final Order
regarding the effective date for certain swap regulations. On July
14, 2011, the CFTC granted temporary exemptive relief from certain
provisions of the Commodity Exchange Act that otherwise would have
taken effect on July 16, 2011, the general effective date of title
VII of the Dodd-Frank Wall Street Reform and Consumer Protection
Act. On October 25, 2011, the CFTC proposed to extend the exemptive
relief beyond the December 31, 2011 expiration date. Today's
Final Order extends the expiration date of the exemptive relief to
as late as July 16, 2012.
Read the CFTC press release
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