Protection of Collateral of Counterparties To Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy
The Commodity Futures Trading Commission (the ``Commission'') is issuing final rules implementing new statutory provisions enacted by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act''). Specifically, the final rule contained herein imposes requirements on swap dealers (``SDs'') and major swap participants (``MSPs'') with respect to the treatment of collateral posted by their counterparties to margin, guarantee, or secure uncleared swaps. Additionally, the final rule includes revisions to ensure that, for purposes of subchapter IV of chapter 7 of the Bankruptcy Code, securities held in a portfolio margining account that is a futures account or a Cleared Swaps Customer Account constitute ``customer property''; and owners of such account constitute ``customers.''
1/6/2014 For the part 190 rules, the compliance date and the effective date are the same.
5/5/2014 For uncleared swap transactions that are entered into with ‘‘new counterparties,’’ all persons must be in compliance with the requirements set forth in subpart l of part 23 no later than may 5, 2014. A ‘‘new counterparty’’ is a counterparty with whom, at the time of the effective date of the final rule, no agreement exists between the swap dealer or major swap participant and that counterparty concerning uncleared swaps.
11/3/2014 For uncleared swap transactions that are entered into with ‘‘existing counterparties,’’ all persons must be in compliance with the requirements set forth in subpart l of part 23 no later than november 3, 2014. An ‘‘existing counterparty’’ is a counterparty with whom, at the time of the effective date of the final rule, an agreement exists between the swap dealer or major swap participant and that counterparty concerning uncleared swaps.