Dodd-Frank Title VII (Swaps) Effectiveness—July 16 and Beyond

Originally published June 14, 2011

Keywords: Dodd-Frank Title VII, swaps, Commodity Futures Trading Commission, proposed order, OTC

The Commodity Futures Trading Commission, meeting in open session today, passed a proposed order to address effective date concerns engendered by the anticipated lack of completion of the majority of needed implementing regulations by the July 16 date indicated by the statute. The proposed order will be subject to a 14-day comment period. As of this writing, the proposed order is not yet available and thus close analysis will await the proposed order's publication.

Commissioners, speaking informally, aired the view that the purpose of the proposed order would be to allow the over-the-counter (OTC) swap markets to continue to function normally until such time as Title VII regulations might be phased in. The proposed order, if it becomes effective, will expire on December 31, 2011. This sunset feature was the subject of some debate,