Commodity Futures Trading Commission September 14, 2020 – Federal Register Recent Federal Regulation Documents

The Commodity Futures Trading Commission (``Commission'' or ``CFTC'') is adopting a final rule (``Final Rule'') addressing the cross-border application of certain swap provisions of the Commodity Exchange Act (``CEA or ``Act''), as added by Title VII of the Dodd- Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act''). The Final Rule addresses the cross-border application of the registration thresholds and certain requirements applicable to swap dealers (``SDs'') and major swap participants (``MSPs''), and establishes a formal process for requesting comparability determinations for such requirements from the Commission. The Final Rule adopts a risk-based approach that, consistent with the applicable section of the CEA, and with due consideration of international comity principles and the Commission's interest in focusing its authority on potential significant risks to the U.S. financial system, advances the goals of the Dodd-Frank Act's swap reforms, while fostering greater liquidity and competitive markets, promoting enhanced regulatory cooperation, and improving the global harmonization of swap regulation.