Please note the April 10, 2013, deadline to register and obtain
a Legal Entity Identifier (LEI), described in the advisory recently released by the Commodity
Futures Trading Commission (CFTC).
LEI registration is required by CFTC reporting and recordkeeping
rules adopted under the Dodd-Frank Act.
For swap contracts in effect on or after April 25, 2011,
each party to the contract (not just swap dealers and major swap
participants) must register and obtain an LEI.
Also please note two other upcoming CFTC compliance
dates.
Beginning May 1, 2013, a commercial entity
entering a swap contract with a swap dealer must agree to the ISDA
August 2012 Dodd-Frank Protocol or similar contractual
terms.
Beginning September 9, 2013, mandatory clearing
for certain interest rate swaps and credit default swaps begins for
non-financial, commercial entities. In order to clear a swap,
parties to the swap must have negotiated a futures and options
agreement and related contracts. Commercial entities may be
eligible to elect to opt-out of the clearing requirement and
continue to enter swaps under an ISDA Master Agreement; however,
any SEC reporting company must have approval from its board of
directors before making this election.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.