Statement of Support on Swap Transaction Compliance and Implementation Schedule – Clearing Requirement
Chairman Gary Gensler
July 24, 2012
I support the final rule to establish a schedule to phase in compliance with the clearing requirement provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The rule gives market participants an adequate amount of time to comply and helps facilitate an orderly transition to the new clearing requirements for the swaps market. The rule provides greater clarity to market participants regarding the timeframe for bringing their swaps into compliance with the clearing requirement.
The final rule will phase in the clearing requirements based on the type of market participant entering into swaps that are subject to the clearing requirement. Market participants will be required to comply with the Commission’s clearing requirement within three, six or nine months, depending on the swap’s counterparties. Swap dealers and private funds active in the swaps market will be required to comply first with phased-in compliance for other market participants. Accounts managed by third party investment managers, as well as ERISA pension plans, will be provided the longest period for compliance.
The compliance schedule will commence after the Commission’s final clearing requirement determination is published in the Federal Register.
Last Updated: July 24, 2012