On July 22, 2020, the U.S. Commodity Futures Trading Commission (“CFTC” or the “Commission”) voted 3-2 (with Commissioners Rostin Behnam and Dan Berkovitz dissenting) to adopt a final rule (the “Final Rule”) that will impose capital requirements on swap dealers (“SDs”) and major swap participants (“MSPs”) that are not subject to the capital requirements of a Prudential Regulator (as defined below) (such entities, the “Covered Swap Entities”). The Final Rule allows SDs to choose from three potential alternative methods to be in compliance with the minimum capital requirements. Under the Final Rule, the CFTC also adopted financial reporting requirements for Covered Swap Entities and amended existing capital rules for CFTC-registered futures commission merchants (“FCMs” and those that are also SDs, “FCM-SDs”) to provide explicit capital requirements for proprietary positions in swaps and security-based swaps that are not cleared by a clearing organization, in addition to other amendments to existing CFTC regulations. Of the 108 SDs provisionally registered with the CFTC as of June 30, 2020, 56 will be subject to the Final Rule’s capital requirements, while the remainder will remain subject to the capital requirements of their Prudential Regulators.