On April 12, 2011, the Commodity Futures Trading Commission (“CFTC”) proposed rules under Section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) governing margin and capital requirements applicable to swap dealers and major swap participants that are not regulated by the Prudential Regulators under Dodd-Frank. The comment period for the proposed rules closes 60 days after publication in the Federal Register of the CFTC’s forthcoming swap dealer and major swap participant capital proposal. The attached memorandum reviews the proposed rules and compares the CFTC’s proposed rules to the swap margin rules recently proposed by the prudential regulators.
