Release Number 8925-24

CFTC Approves Final Capital Comparability Determinations for Certain Non-U.S. Nonbank Swap Dealers

June 25, 2024

— The Commodity Futures Trading Commission announced today it has approved four comparability determinations and related comparability orders granting conditional substituted compliance in connection with the CFTC’s capital and financial reporting requirements to certain CFTC-registered nonbank swap dealers organized and domiciled in Japan, Mexico, the European Union (France and Germany), or the United Kingdom.

Pursuant to the orders, non-U.S. nonbank swap dealers subject to prudential regulation by the Financial Services Agency of Japan, the National Banking and Securities Commission of Mexico and the Mexican Central Bank, the European Central Bank, or the United Kingdom Prudential Regulation Authority may satisfy certain Commodity Exchange Act capital and financial reporting requirements by being subject to, and complying with, comparable capital and financial reporting requirements under the respective foreign jurisdiction’s laws and regulations, subject to specified conditions.

The comparability orders will become effective upon their publication in the Federal Register. For several order conditions imposing new obligations on non-U.S. nonbank swap dealers, the CFTC is granting an additional compliance period of 180 calendar days.

To rely on a comparability order, an eligible non-U.S. nonbank swap dealer must notify the CFTC of its intention to satisfy the CFTC’s capital and financial requirements by substituted compliance. The non-U.S. nonbank swap dealer may not apply substituted compliance until it receives confirmation from CFTC staff that the swap dealer may do so. The notice of intent must include certain representations enumerated in the respective order’s conditions and must be submitted to the following address: [email protected].