• CFTC Adopts Final SEF, "Available to Trade" and Block Trade Rules - Implications for End-Users
  • July 5, 2013
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The Commodity Futures Trading Commission (CFTC) recently adopted three final rules pursuant to Title VII of the Dodd-Frank Wall Street Reform and Customer Protection Act that impact the manner in which end-users’ cleared swaps will be executed. These rules (i) set forth a regulatory framework for swap execution facilities (SEFs) (the SEF Final Rule), (ii) establish a process for a designated contract market (DCM), typically referred to as an exchange, or a SEF to make a swap that is subject to mandatory clearing and trade execution “available to trade” (the Available to Trade Final Rule), and (iii) establish a process for determining which large swap transactions can qualify as “block trades” (the Block Trade Final Rule). This Legal Alert provides a high-level summary of each of the three final rules as they relate to trading entities in the swap markets.