KPMG’s Americas’ Financial Services Regulatory Center of Excellence released an alert in April 2012 addressing the final rule published by the CFTC and SEC. The rule defined the swap terms for participants as the regulators define Title VII of the Dodd-Frank Act. This alert also includes an announcement from the Federal Reserve about the conformance period clarification for the Volcker Rule.
The SEC and CFTC finalized a rule defining swap dealer, security-based swap dealer, major swap participants and eligible contract participants. This definition clarifies for market participants whether their current activities will subject them to comprehensive oversight in the coming months.
The Federal Reserve clarified the conformance period for those affected by the Volcker Rule implementation. The Fed identified that there is a two-year conformance period, which will make this rule effective July 21, 2014, for entities to fully conform its activities and investments, unless otherwise extended.
The proposed rule has received more than 17,000 comments and has not been finalized to date.