CFTC issues final exemptive order delaying cross-border application of certain swap-related provisions of Dodd-Frank Act
30 January 2013SEC Update
On December 21, 2012, the Commodity Futures Trading Commission (CFTC) issued a final exemptive order delaying the application to non-U.S. swap activity of various swap-related provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The final order may provide insight into how the CFTC ultimately will rule on the cross-border issues relating to the application of the Dodd-Frank swap rules. It appears that, compared to its initial position, the CFTC may be inclined to adopt a less sweeping definition of a “U.S. person” subject to its jurisdiction and a less expansive position on the cross-border application of the rules. The CFTC, however, has yet to make a final determination on issues of extraterritoriality.