The U.S futures regulator has approved an interim rule that gives firms more time to comply with the business conduct and documentation standards in the Dodd-Frank Act.
The interim final rule issued by the Commodity Futures Trading Commission extended the compliance date by which swap dealers will have to carry out a "portfolio reconciliation" of trades with other swaps dealers. The compliance date has been extended from January 1, 2013 to July 1, 2013. The interim rule also extends the compliance date for firms to have policies and procedures for keeping documentation on their swap transactions to May 1, 2013.
The extensions give firms more time to comply with the documentation standards for swaps trades.
The business conduct rules are an important cornerstone of the swap dealer rules in the Dodd-Frank Act.
The rules require swap dealers to verify counterparty’s eligibility to trade in swaps and to disclose the material risks in their swaps trades.
The extension
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