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ARTICLE · 23 JANUARY 2012

CFTC Adopts Final Swap Recordkeeping And Reporting Rules

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The minimum size of block trades and the time delay before dissemination of information regarding block trades has been the subject of much concern, because public reporting of a large transaction immediately following execution could have an adverse impact on the ability of a party to the transaction to enter into offsetting transactions to hedge its exposure.

United StatesFinance and Banking

On December 20, 2011, the Commodity Futures Trading Commission (CFTC) adopted its final swap recordkeeping and reporting rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). These rules are designed to increase transparency in the over-the-counter derivatives markets, both to regulators and to the public.

In general, the final rules impose fewer requirements on funds and other buy-side derivatives users than were contemplated by the rules that were proposed in December 2010, although such entities will need to comply with certain new requirements, including recordkeeping requirements and, in certain limited circumstances described below, reporting requirements. These rules could also impact the buy-side indirectly in several ways. Access to information regarding derivatives transactions may give the CFTC additional tools to enforce the new CFTC antifraud rules adopted under the Dodd-Frank Act. Public availability of data

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