CFTC Proposes Guidance on Cross-Border Application of Title VII of the Dodd-Frank Act

On June 29, 2012, the Commodity Futures Trading Commission issued proposed interpretive guidance regarding the cross-border application of Title VII of the Dodd-Frank Act. The proposed guidance would define “U.S. person” for purposes of the Commission’s regulation of swaps activities under Title VII and describe the application of various Title VII requirements to U.S. and non-U.S. market participants. On the same day, the Commission also proposed an exemptive order which would delay the effectiveness of certain provisions of Title VII for certain entities. The memorandum summarizes the key components of the proposed guidance and order, with a focus on potential issues of concern for international financial market participants.