U.S. Swaps Compliance for Multinationals
Ilya Beylin, Michael Sackheim and Joseph Schwartz, U.S. Swaps Compliance for Multinationals, Int’l Fin. L. Rev. (Sept. 2014).
3 Pages Posted: 27 Jul 2018
Date Written: Aug 1, 2014
Most commentary surrounding Title VII of the Dodd-Frank Act focuses on the new regulatory regime it created for swap market intermediaries, including swap dealers (SDs) and major swap participants (MSPs). However, it should not be forgotten that Dodd-Frank imposes a range of requirements affecting all swaps market participants. These requirements extend across US borders and affect many global commercial businesses that use swaps to manage their risks. Known as commercial end-users, the legal, compliance and treasury functions at these corporates face new concerns in light of the swaps provisions of the Dodd-Frank Act, and their implementation via regulations issued by the Commodity Futures Trading Commission (CFTC). The Securities and Exchange Commission (SEC) is implementing similar regulations governing security-based swaps. But compared to interest rate, foreign exchange and other products falling within the CFTC’s jurisdiction, security-based swaps are used relatively infrequently by corporates.
Keywords: Swaps, Derivatives, CFTC, SEC, Swap-Dealer, End-User, Dodd-Frank, Regulation, Systemic Risk, Reporting, Customer Protection
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