The Commodity Futures Trading Commission proposed business conduct standards for swap dealers and major swap participants dealing with counterparties Thursday, as well as additional rules laying the groundwork for derivatives oversight.
The proposals, which generally have a 60-day comment period following publication in the Federal Register, are another in a series of rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The proposed conduct standards would require employees of swap dealers and major swap participants to provide for confidential treatment of counterparty information and would ban trading ahead of and front running counterparty swap transactions.
The proposal would give the industry a roadmap for setting up trades by requiring dealers and major participants to verify a counterparty's eligibility to engage in swap transactions. They would also be required to provide scenario analysis to counterparties for high-risk complex bilateral swaps
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.