Public Statements & Remarks

Statement of Chairman Rostin Behnam in Support of the Proposed Rule on Capital and Financial Reporting Requirements for Swap Dealers and Major Swap Participants

December 15, 2023

I support the proposed rule to amend certain requirements in Part 23 of the Commission’s regulations to address specific issues identified during the implementation of the Commission’s 2020 final rule on capital and financial reporting requirements for swap dealers (SDs) and major swap participants (MSPs).[1]  The proposed rule would codify interpretive CFTC Letter No. 21-15[2] regarding capital and financial reporting requirements for nonbank SDs and nonbank MSPs electing the tangible net worth capital approach;[3] codify the time-limited no-action position in CFTC Letter No. 21-18[4] regarding financial reporting requirements for bank SDs; clarify technical aspects of the reporting requirements; and update an FCM reporting form consistent with net capital requirements previously adopted by the Commission for FCMs.  The proposed amendments are not intended to change the Commission’s capital approach.

This proposal is a testament to the commitment I previously made for the Commission to consider the codification of various forms of relief previously provided by CFTC Division staff through no-action position letters.[5]  As staff letters only bind the staff of the issuing Division with respect to the specific facts, situations, and persons addressed by the respective staff letters,[6] it is good government for the Commission to clean-up its rule set where the Commission determines that compliance with certain regulations is impossible.  Such Commission action not only provides regulatory certainty and clarity to our registrants with the benefit of notice and public comment, but also ensures the efficient use of staff resources to fix an issue once instead of allocating time to a series of no-action positions for the same matter.

I look forward to hearing the public's comments on the proposed amendments to the regulations and the relevant appendices in Part 23 of the Commission’s regulations.  I thank staff in the Market Participants Division, Office of the General Counsel, and the Office of the Chief Economist for all of their work on the proposal.

[1] Capital Requirements of Swap Dealers and Major Swap Participants, 85 FR 57462 (Sept. 15, 2020).

[2] CFTC Letter No. 21-15, Jun. 29, 2021, available at

[3] See 17 CFR 23.101.

[4] CFTC Letter No. 21-18, Aug. 31, 2021, available at

[5] Keynote Address of Chairman Rostin Behnam at the ABA Business Law Section Derivatives & Futures Law Committee Winter Meeting, (Feb. 3. 2023),

[6] See, e.g., 17 C.F.R. § 140.99.