• The CFTC’s Final Entity Rules and Their Implications for Hedge Funds and Other Private Funds
  • May 15, 2012
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • Last month, the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) adopted highly anticipated final rules to, among other things, further define the terms “swap dealer” and “major swap participant” (Final Entity Rules). The Final Entity Rules are significant because persons that meet the swap dealer or major swap participant definitions will be required to register with the CFTC and comply with a myriad of substantive regulatory requirements including, among others, internal and external business conduct standards and capital, margin, recordkeeping and reporting requirements. The Final Entity Rules are considered a key component of the new regulatory regime that the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) imposes on over-the-counter derivatives.