CFTC Posts Discussion Draft Of Proposed No-Action Relief Designed To Ease Dodd Frank Transition

Article by Eric Fischer , Jackson Galloway and Elizabeth Shea Fries

The CFTC posted a discussion draft of a staff no-action letter designed to supplement previously proposed exemptive relief from certain requirements in the Commodity Exchange Act (the "CEA") resulting from the Dodd-Frank Act that otherwise become effective on July 16, 2011 under the terms of the Act. The proposed exemptive relief was discussed in the June 21, 2011 Alert. The proposed no-action relief would be from (1) certain segregation requirements with respect to collateral for uncleared swaps that apply to swap dealers and major swap participants; (2) certain registration requirements that apply to a derivatives clearing organization that clears swaps; and (3) requirements applicable to swap dealers and major swap participants regarding the duties and designation of a chief compliance officer. The proposed staff no-action letter would not limit the CFTC's applicable anti-fraud