Publications

On October 1, 2010, the Commodity Futures Trading Commission (the "CFTC") issued, under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), (1) proposed rules regarding ownership, governance and financial resources for derivatives clearing organizations ("DCOs"), designated contract markets ("DCMs") and swap execution facilities ("SEFs") and (2) interim final rules for reporting and retention of information for swaps entered into before the enactment of the Dodd-Frank Act. The proposal that has generated the most interest is a proposed limit on ownership for DCOs, which provides that DCOs will be subject to one of two ownership limits: (1) no DCO member (or affiliate) may own more than 20% of the voting equity of a DCO and, in addition, financial firms may not, in the aggregate, own more than 40% of voting equity of a DCO or (2) no DCO member or financial firm (or affiliate) may own more than 5% of the voting equity of a DCO. The SEC has not yet issued comparable rules and proposals. The proposals and rules are summarized in the attached memorandum.

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