CFTC Cross-Border Application of Dodd-Frank Title VII: CFTC Approves Final Guidance and Exemptive Order on Cross-Border Application of the Swaps Provisions of Dodd-Frank

Sullivan & Cromwell LLP - July 22, 2013

On July 12, 2013, the CFTC convened a meeting regarding the cross-border application of CEA requirements and CFTC rules regarding swaps that addressed, among other things, a Final Exemptive Order and Final Guidance. Prior to the meeting, the Commission released a statement of cross-border understanding between the CFTC and the European Commission (“EC”), four no-action letters, and the Final Exemptive Order regarding the cross-border application of the swaps requirements. On July 15, 2013, the Commission released the Final Guidance, which was delayed because of technical errata in the document. Attached to this memorandum are the charts appended to the Final Guidance summarizing fact scenarios that trigger certain Entity-Level and Transaction-Level requirements and identify whether, and the circumstances in which, substituted compliance is available. Commissioner Scott O’Malia was the sole dissenting vote on the Final Guidance and Exemptive Order, expressing a preference for closer collaboration with regulators in other jurisdictions.