Clifford Chance
Dodd-Frank Act v. EMIR Business conduct rules
23 October 2012
The Dodd-Frank Act will impose certain business conduct standards on swap dealers (SDs) and major swap participants (MSPs). EMIR only imposes limited business conduct standards, but there are corresponding provisions in other EU legislation. This paper summarises and compares:
- CFTC rules: the final rules adopted by the U.S. Commodity Futures Trading Commission (CFTC) amending the regulations under the Commodity Exchange Act (CEA):
- Internal business conduct rules: in April 2012, adding provisions on conflicts of interest, chief compliance officers, reporting, recordkeeping, and daily trading records requirements and duties of SDs and MSPs (17 CFR §1.71, §3.3, §23.600 through §23.206 and §23.607 through §23.206);
- External business conduct rules: in February 2012, adding provisions on business conduct standards for SDs and MSPs dealing with counterparties, including special entities (17 CFR §23.400 through §23.451).
- EU rules: the corresponding provisions of the EU Markets in Financial Instruments Directive (MiFID) and the implementing directive and regulation adopted by the European Commission under MiFID (and where relevant changes contemplated by the proposed directive and regulation replacing MiFID), as well as relevant provisions of the EU Regulation on OTC derivatives, central counterparties and trade repositories (EMIR).
