from 1996 to 2007 , guatemala was one of the major providers for children for international adoption , peaking at 5,577 children adopted in 2007 .

since reforms in 2007-8 , aimed at combating extensive corruption in the adoption process , the numbers have fallen drastically .

however , the numbers of children placed with guatemalan families has remained roughly constant at around 250 per year both before and after the new legislation .

adoption in guatemala

adoption groups transracial adoption group u . s . adoption group u . s . newborn waiting group foster adoption waiting group older parents adoption group new to adoption group foster adoption group open adoption group christian adoptive families single parent adoption group older child adoption group guatemala adoption group china adoption group korea adoption group see all adoption groups
gibbons jl , wilson sl , rufener ca . gender attitudes mediate gender differences in attitudes toward adoption in guatemala .
guatemala is party to the hague convention on protection of children and co - operation in respect of intercountry adoption ( hague adoption convention ) .
“karen’s case is actually a high - profile criminal investigation in guatemala , ” says investigative journalist erin siegal mcintyre . she’s spent several years looking into karen’s adoption and guatemala ' s broken adoption system in general .
department of psychology , universidad del valle de guatemala , 18 ave . 11 - 95 zona 15 vista hermosa iii oficina g203 , guatemala , guatemala
in each case , prospective parents paid tens of thousands of dollars in fees . all that money fuelled a lucrative adoption industry in guatemala , and an underground trade in abducted children .
rotabi ks . fraud in intercountry adoption : child sales and abduction in vietnam , cambodia , and guatemala . in : gibbons jl , rotabi ks , editors .
we found an adoption agency in the us which handled adoptions from guatemala . the agency had attorneys in guatemala who were referred mothers who were relinquishing their babies , and handled the legal arrangements for inter - country adoptions . we commenced the long process to arrange a legal adoption from guatemala .
comisión internacional contra la impunidad en guatemala , cicig ( 2010 ) report on players involved in the illegal adoption process in guatemala since the entry into force of the adoption law ( decree 77 - 2007 ) . urltoken . accessed 06 jul 2015
in 2011 , a guatemalan judge ruled that karen should be returned to guatemala .
bebé robada iba a ser dada en adopción en guatemala [ stolen baby was going to be given in adoption in guatemala ] ( 2008 , july 23 ) agencia ap . urltoken . accessed 06 jul 2015
karen was originally presented for adoption in guatemala by a woman who claimed to be her mother . but her dna didn’t match karen’s .
so in all reality , adoption from guatemala is basically not an option right now . i wish i had better news for you .
gibbons jl , ashdown bk . ethnic identification , attitudes , and group relations in guatemala .
bunkers km , groza v , lauer dp . international adoption and child protection in guatemala : a case of the tail wagging the dog .
groza v , bunkers km . adoption policy and evidence - based domestic adoption practice : a comparison of romania , ukraine , india , guatemala , and ethiopia .
bailey : because adoptions are criminalized in this - in guatemala . and so anything that even reeks of adoption - right ? - is bad . you ' re guilty .
rotabi ks , morris aw , weil mo . international child adoption in a post - conflict society : a multi - systemic assessment of guatemala .
and we don ' t foresee any new adoptions from guatemala taking place in the near future .
u . s . adoption agencies in ethiopia respond to u . s . embassy documents in which they are mentioned
bunkers km , groza v . intercountry adoption and child welfare in guatemala : lessons learned pre - and post - ratification of the 1993 hague convention on the protection of children and cooperation in respect of intercountry adoption . in : gibbons jl , rotabi ks , editors .
in ongoing discussions with the government of guatemala about their readiness to resume intercountry adoption , they have indicated that their priority is to continue developing their domestic adoption processes , but they are receptive to ongoing discussions .
adoption notice : expiration of accreditation for adoption s . t . a . r . , aaa full circle adoptions & family building center , inc . , buckner adoption & maternity services , and grace international adoption agency
in terms of domestic adoption , i think that you might have misread a post . some families went ( including me ) went down to guatemala during the adoption process . i was given the legal right to be my daughter ' s foster mother until the adoption was completed . this was under the old system . right now , starting a new adoption process from guatemala is not possible .
while marriage and age are not qualifying factors for guatemala , sexual orientation is a factor . single men are usually discouraged from adopting in guatemala . ( cases involving single men are evaluated on a case by case basis in guatemala . if you are a single man interested in adopting please consult an adoption agency regarding your ability to successfully adopt a child from guatemala . ) all singles applying to adopt from guatemala must state that they are heterosexual . the guatemalan government requires that all single individuals who are adopting from guatemala sign a statement indicating they are not involved in a gay or lesbian relationship and are not homosexual .
in december 2007 , guatemala passed new adoption legislation that incorporated the hague adoption convention into guatemala’s adoption system , created the guatemalan national adoption council ( cna ) , and established a transition period for cases initiated prior to its enactment . the guatemalan government subsequently suspended new adoption applications until they could create a new adoption process . as of 2016 , the cna has completed its processing of the most of the transition cases that were pending when the new law went into effect . the three remaining transition cases are pending in various judicial processes .
learn more about siegal ' s extensive investigation of fraud , corruption , and child trafficking in international adoption between guatemala and the united states at findingfernanda . com .
u . s . embassy in guatemala plays an important part in the adoption process , facilitating dna testing and issuing pre - approval from the department of homeland security . other major adoption authorities include minor ' s court ( local authorities ) and solicitor general ' s office ( pgn ) that reviews and approves all international adoption cases in guatemala . please see u . s . department of state overview for more details .
guatemala was once one of the most popular countries for foreign adoption , just after china . ten years ago though , guatemala ' s government clamped down after mass corruption was exposed in its adoption system . this week , a 64 - year - old american woman is set to stand trial on charges related to adoptions that she facilitated . maria martin reports from guatemala .
despite the denial by the majority of guatemalan adults of the importance of ethnicity in influencing their willingness to adopt , adoption attitudes are known to be embedded in people’s social attitudes , cultural assumptions , and beliefs ( bausch 2006 ; evan b . donaldson institute 2002 ; hollingsworth 2000 ) . because of the documented prejudice and discrimination in guatemala against indigenous persons ( e . g . hale 2006 ) , we set out to investigate whether attitudes about adoption differed for inter - ethnic adoption and adoption in general , and also whether attitudes toward the two ethnic groups in guatemala were related to attitudes about adoption .
on november 26 , 2002 guatemala ratified the hague convention on intercountry adoption , a treaty created to end adoption trafficking , which entered into force in guatemala on march 1 , 2003 . 8 several developed countries ( including canada , germany , the netherlands , spain , and the united kingdom ) filed official objections to guatemala’s accession to the convention , citing guatemala’s widespread questionable adoption procedures , which , as the adoption council of canada wrote in 2004 , included widespread “illegal and unethical practices … and issues of child trafficking . ” these countries stopped all their citizens’ adoptions from guatemala . for the next six months , as guatemala attempted to revise its adoption laws , adoption processing slowed down . however , by the fall of that year , reportedly after lobbying by wealthy guatemalan adoption attorneys , including one who had been married to a constitutional court justice , the guatemalan constitutional court overturned the hague ratification , and private adoptions resumed .
amy and rob carr in guatemala with geovany archilla rodas , whom they have been trying to adopt since 2007 .
intercountry adoptions are not currently possible between guatemala and the united states because the government of guatemala is not processing intercountry adoptions with any country at this time .
she reminded herself of that in guatemala after she and her husband and geovany visited their lawyer . she arrived feeling hopeful . she left in tears .
adoption notice : accreditation renewal refusal for amazing grace adoptions , adopt abroad international , and faith international adoption , inc .
index of u . s . adoption agencies and orphanages mentioned in u . s . embassy documents
vida is a not - for - profit international and domestic adoption agency , founded in 1986 .
for questions about a pending form i - 600 petition for a child from guatemala : uscis guatemala city field office email : guatemala . adoptions @ urltoken phone : 011 - 502 - 2326 - 4000 ( ask to be transferred to uscis )
m . martin : guatemala ' s international anti - corruption commission , set up with the united nations , documented over 3 , 000 cases of irregular adoptions before international pressure led guatemala to put a halt to them in 2007 . after this , guatemala set up a new agency , the national council of adoptions . it worked to encourage keeping children in guatemala . rudy zepeda is its spokesperson .
bailey , they say , was a player in the widespread corruption of the adoption industry in guatemala that preyed on innocent mothers and babies for profit . in the decade leading up to guatemala’s foreign adoption ban , more nearly 30 , 000 guatemalan children were adopted . it became a lucrative industry for a poor country — costs for families looking to adopt guatemalan babies often ran as high as $ 40 , 000 , an amount which is considered standard in us adoption cases but high for foreign adoptions .
the u . s . embassy cables : adoption fraud in guatemala , 1987 - 2010 ,
erin siegal mcintyre , february 1 , 2012 , cathexis press . read excerpts >
t he numbers . guatemala is widely considered to have had the worst international adoption improprieties over the longest period of time . in 2006 and 2007 , guatemala sent almost as many children to the united states for adoption as china , despite a hundred - fold difference in size : in 2007 , china sent 5 , 453 out of its population of 1 . 3 billion . in the same year , guatemala sent 4 , 728 out of its 13 million . in that year , and several years before , an astonishing one out of every 110 guatemalan children born was adopted in the united states .
reports of questionable adoption practices continued , as can be read on our page news reports of guatemalan adoption irregularities . in response , in august 2007 , the u . s . embassy in guatemala began requiring a second dna test , to ensure the child being adopted was the same child who had been relinquished—and hadn’t been replaced with another child in the meantime .
in fact , as mr zune discovered with the help of government investigators , he was probably born in a mexican border town and given to a criminal network in guatemala . he plans to file cases against traffickers in guatemala and the belgian adoption agency he accuses of having been complicit in the fraud . “adoption is not just paperwork and an aeroplane ticket , ” he says . “when a child grows up , you need to be able to tell him where he came from . ”
ba vi , vietnam adoption : happy and healthy child living with hiv in the u . s .
gibbons jl , wilson sl , schnell am . foster parents as a critical link and resource in international adoptions from guatemala .
they say many judges and child welfare officials in guatemala have delayed approving cases out of fear of increased government scrutiny and prosecution , not because the children should not be approved for adoption .
[ 2 ] cia fact book , guatemala , , updated august 7 , 2008 .
we are a family living in guatemala , that for a long while thought we would need to do a domestic adoption in order to bring our son home . however , we were considered a transition case , and are now finishing an international adoption under new law . we were grandfathered in on the us side for his visa .
in addition , items adapted from the evan b . donaldson ( 1997 ) survey were used to assess general attitudes about adoption and specifically about international adoption , inter - ethnic adoption by ladinos , and inter - ethnic adoption by indigenous . the basic item was “in general do you have a very favorable opinion of adoption , a somewhat favorable opinion , a somewhat unfavorable opinion , or a very unfavorable opinion of adoption ? ” responses were “ very favorable , ” “ somewhat favorable , ” “ somewhat unfavorable ” , and “ very unfavorable . ” in addition , similar questions that specified the type of adoption–adoption of guatemalan children by foreigners ( intercountry adoption ) , adoption of indigenous children by ladinos , and adoption of ladino children by indigenous , were specified . participants were also queried about their experience with adoption , using the evan b . donaldson question , “has anyone in your family , or among your close friends , ever been adopted or adopted a child or placed a child for adoption ? ” .
nightlight is currently not working in guatemala . our organization helped complete adoptions for several years in the country , but the united states has blocked adoptions at this time .
the carrs are among the 4 , 000 americans who found themselves stuck in limbo when guatemala shut down its international adoption program in january 2008 amid mounting evidence of corruption and child trafficking . officials here and in washington promised at the time to process the remaining cases expeditiously .
but the problem of delayed adoptions is particularly acute in guatemala , a country of about 14 million people , which in 2007 ranked second only to china in the number of children sent to the united states .
revealed in these cables is the evolution of systemic corruption in international adoption between guatemala and the united states . it becomes clear in these documents that some u . s . government officials knew about illegal practices in obtaining and processing “orphans” before guatemalan adoption grew to become a multi - million dollar industry . furthermore , american families in the process of adopting these children , were not informed about the depth and scope of the problem .
how sizable was that fee ? by the time guatemala closed to u . s . adoption , these notarios were charging $ 35 , 000 or more per adopted
ashdown bk , gibbons jl , hackathorn j , harvey rd . the influence of social and individual variables on ethnic attitudes in guatemala .
for the first time , the public is given access to revealing information written in cables about international adoption that traveled between the u . s . embassy in guatemala and u . s . department of state from 1987 until 2010 . these cables document the ambiguous moral and legal terrain that u . s . officials navigated amid their awareness of rising levels of fraud , corruption , and criminality practiced by those involved at many levels with adoption in guatemala .
adopting a child from guatemala used to be really popular among americans . in 2006 alone , more than 4 , 000 guatemalan kids were adopted by families here in the us .
guatemala was at the center of the controversy surrounding intercountry adoption ( ica ) . in 2007 at the peak of guatemala’s role as a sending country , one percent of the babies born in guatemala were being relinquished for adoption by foreigners , mostly from the united states ( selman 2012 ) . reports of child theft , sale , and trafficking roused international consternation ( bunkers and groza 2012 ; comisión internacional contra la impunidad en guatemala , cicig 2010 ; goicoechea and degeling 2007 ; rotabi 2012 ; rotabi et al . 2008 ) and subsequently , one case of child abduction for ica was proven with dna testing ( “bebé robada” 2008 ; bunkers et al . 2009 ) . in 2008 , guatemala implemented the hague convention on the protection of children and co - operation in respect of intercountry adoption , known as the hague convention ( hague conference on private international law 1993 ) . this international agreement is designed to protect children’s well - being and to prevent abuses such as those reported in guatemala .
in conclusion , the present study has identified a possible attitudinal barrier to promoting domestic adoption in guatemala—ethnic prejudice against indigenous people . efforts to reduce the structural barriers that impede domestic adoption might well be augmented by addressing attitudinal barriers , such as machismo and ethnic prejudice , in order to improve the lives of guatemalan children who are in need of a family . as other countries implement the subsidiarity clause of the hague convention , their central adoption authorities would also benefit from examining and countering local prejudices that could stand in the way of finding homes for children in need of families .
in several interview studies respondents identified racism in guatemala as a potential attitudinal barrier to adoption . “here [ in guatemala ] many people are prejudiced , ” was a comment by a guatemalan interviewee ( gibbons et al . 2009 p . 69 ) . similar views were expressed in a second study , in which a respondent said , “the mentality is a race issue…they [ guatemalans ] won’t adopt because of race or looks of a child” ( wilson and gibbons 2005 p . 749 ) .
the department of state remains unable to issue hague adoption certificates or hague custody declarations for new intercountry adoptions from guatemala , because as of april 1 , 2008 , when the united states joined the convention , guatemala did not and still today does not have a hague process in place . the department , however , continues its efforts to work with the government of guatemala on establishing procedures to resume intercountry adoptions .
the results of the present study demonstrated that attitudes about adoption , including inter - ethnic adoption , were linked to attitudes toward indigenous persons . specifically , participants who held more positive attitudes toward indigenous people reported more favorable attitudes toward adoption . those results imply that ethnic attitudes are linked to attitudes about adoption within guatemala , as they were among usa college students ( katz and doyle 2013 ) .
the cables outline a history of conflict and struggle between the u . s . embassy in guatemala and state department officials in washington , d . c . state department officials sometimes failed to respond to serious concerns and , at times , stonewalled efforts meant to provide greater safeguards against child trafficking in adoption .
mcintyre says the us justice department responded negatively , saying there wasn’t enough evidence to take that step . but she says prosecutors in guatemala continue to ask for american help in this case .
the carrs , who have three biological children , adopted their first child — a little girl named samantha — from guatemala without a hitch . they agreed to adopt geovany in december 2007 , just weeks before guatemala closed its program . he was abandoned , their adoption agency told them . a clear - cut case .
at the moment , there are no registration requirements imposed by guatemala , but families are asked to send in two agency - conducted post - placement reports , at 6 months and 12 months after the adoption is completed .
evan b . donaldson adoption institute ( 2002 ) national adoption attitudes survey : research report . available from harris interactive . urltoken . accessed 06 jul 2015
“in guatemala it was so so easy to manufacture paperwork , identity , pay off a judge , pay off a lawyer , ” said investigative reporter erin siegal mcintyre who wrote a book , “finding fernanda , ” on illegal adoptions in guatemala . “this industry was certainly corrupt to the core . ”
do you have questions about which adoption program is right for you ? we have answers . complete this brief inquiry form . it’s the first step in getting started with your adoption today ! get started
at the end of march 2008 our adoption was approved in guatemala . six weeks later , once we had received josé’s entry paperwork to the uk , we flew out to bring him home and on 14 th may 2008 we arrived back in england , our little boy in our arms . a family at last !
mlj adoptions is a hague accredited international adoption agency based in indianapolis , indiana . we provide ethical , compassionate and attentive adoption services to loving and committed families from across the united states and around the world . we’ve successfully placed over two hundred and fifty children through our international adoption programs in bulgaria , burkin . . .
gibbons jl , rufener ca , wilson sl . sex differences in adoption attitudes : the mediating effect of gender role attitudes .
after guatemala’s long civil war ended with a peace treaty and new laws in 1996 , adoptions to other countries began to increase each year . the government of guatemala’s pgn ( the attorney general’s office ) recorded this number of foreign adoptions per year : 6
[ 6 ] this chart is taken from
adoptions in guatemala : protection or business ? ” by casa alianza foundation and myrna mack survivors foundation .
selman p . the rise and fall of intercountry adoption in the 21st century : global trends from 2001 to 2010 . in : gibbons jl , rotabi ks , editors .
goicoechea i , degeling j ( 2007 ) report of a fact - finding mission to guatemala in relation to international adoption . available from the hague , netherlands : hague conference on private international law . urltoken . accessed 06 jul 2015
guatemala is a warm and hospitable latin american country , rich in history and mayan culture . nevertheless , we call guatemala
a developing country
to describe its weak economy and overwhelming poverty , especially in the country - side . extreme poverty , coupled with ostracism towards unwed mothers , leads many women no choice but to give up their children for adoption . guatemala is one of the few countries that allows private adoptions to be facilitated by attorneys between birth mothers and foreign adoptive families .
[ 4 ] “situation faced by institutionalized children and adolescents in shelters in guatemala , ” conducted by the president’s office for social welfare together with the support of holt international services and unicef , may 2008 .
in general , the easiest way to understand the type of child / children that become available for adoption in guatemala is to realize that the child / children become available by way of two different processes . the first is called
abandonment
and the second is
relinquishment
.
the adoption underworld ,
the washington post , jan . 11 , 2009
preventing adoption disasters ,
the boston globe , april 17 , 2010 .
both boys and girls are available for adoption from guatemala with ages ranging from a few months old to teenagers . the children are generally available because of abandonment or relinquishment by the birth parents
as for the effort by guatemalan authorities to return karen to guatemala , genser says he’s confused by it .
seijo l ( 2008 ) mejor padres de guatemala [ better guatemalan parents . ] prensa libre , pp 2–3
guatemala was once one of the world ' s most popular adoption destinations , but stopped the practice after mass corruption was exposed . an american woman is set to stand trial over related charges .
the u . s . embassy cables : adoption fraud in guatemala , 1987 - 2010
by schuster fellow erin siegal is a three - volume compilation of diplomatic cables that reveals disturbing information about how international adoptions between guatemala and the united states were handled between 1987 and 2010 . paperback | ebook volume one | ebook volume two | ebook volume three
guatemala allows both single individuals and couples over the age of 25 to adopt . persons with previous divorces are permitted and welcome to adopt as are persons who already have a child or children in their home . there are also no upper age restrictions to adopt from guatemala .
she first visited guatemala in the early 1990s — she was in her late 30s , was raising two sons as a single mom , and had a career in employee relations . she began volunteering at a catholic orphanage in the western highlands , but her involvement grew quickly when she started a school inside the orphanage .
congreso de la república de guatemala ( 2007 ) decreto número 77 - 2007 . urltoken . accessed 06 jul 2015
there is no national or international adoption registry in guatemala , and children typically become available for adoption / referral once they are released to the attorney ( often , at birth ) and may be as young as 4 - 5 months at the time adoption is finalized . most children are of spanish or mayan descent , with olive skin and dark hair . siblings and unrelated children can be adopted at the same time .
overall , the participants in the present study expressed favorable attitudes toward adoption in general and toward inter - ethnic adoption . adoption in general was most favorably viewed , followed by international adoption , with adoption of ladinos by indigenous viewed least favorably . but even in this last category , there was broad approval , with 76 % of the respondents expressing approval rather than disapproval . this overwhelming support for inter - ethnic or interracial adoption among university students may be widespread ( at least when based on self - report ) as evidenced in studies from the usa ( whatley et al . 2003 ) and south africa ( moos and mwaba 2007 ) . in a study from the usa , university students reported low levels of modern racism ; however , when they viewed a photograph of a transracial adoptive family , they endorsed more negative views of adoption than when they viewed a same - race adoptive family ( katz and doyle 2013 ) .
it got so bad that guatemala halted all new international adoptions in 2007 . the country ' s been trying to reform its broken system ever since . but there are still a lot of questions about what went on in the past , and about one case in particular .
a decade ago guatemala’s hotels were full of light - skinned foreigners with dark - skinned babies . the country was sending nearly as many children to america for adoption as was china , despite a hundredfold difference in population . between 1996 and 2008 more than 30 , 000 guatemalan children were adopted abroad—in 2007 nearly one out of every 100 babies . hotels in guatemala city , the capital , had entire floors for child care and notaries’ offices . “some countries export bananas , ” says fernando linares beltranena , who worked as an adoption lawyer . “we exported babies . ”
nancy bailey : we had children left at our doorstep in a basket . we had birth mothers who came to us while they were pregnant asking if they could place their child in adoption .
after 2002 , the united states remained the lone developed country allowing adoptions from guatemala , despite its record of questionable practices . that’s in part because the united states had signed but not yet ratified the hague convention , and therefore did not use reported violations of the hague convention to halt adoptions from guatemala . for several years 97 percent or more of all children adopted from guatemala went to american parents .
in 2013 , the mexican government took many positive strides towards improving the climate for international adoption . mexico is now a very strong option for families looking to adopt from latin america . as adoption from guatemala has been closed for some time with no end in sight , we have found that many families are seeking to bring home a sibling to their guatemalan - adopted child . others still are seeking out the limited latin american options to find that adopting from mexico is one of the most stable adoption options . here are five reasons to consider mexico for your international adoption .
it took us nine further months to complete the re - adoption process in the uk – more social worker visits , forms to be filled in and court visits to be endured – to ensure that josé was our son in british law , as well as guatemalan law , and in march 2009 we finally received josé’s adoption certificate and were able to apply for a british passport for him .
it involves a girl named karen abigail , who was adopted years ago from guatemala by an american couple from missouri .
the present study carries with it implications for child welfare practice in guatemala . as the cna continues to promote domestic adoptions as part of a child welfare initiative , it would behoove the agency to coordinate their efforts with other systematic efforts to reduce racism in guatemala . examples of potential collaborators include the presidential commission , — comisión presidencial contra la discriminación y el racismo [ presidential commission against discrimination and racism ] ( codisra ; presidencia de la república 2002 ) that was charged with investigating and developing plans to eliminate discrimination and racism in guatemala . another potential collaborator is the prominent non - profit foundation el centro de investigaciones regionales de mesoamérica ( cirma ) that sponsored an exhibit and a book series titled por qué estamos como estamos [ why we are like we are ] in which ethnicity in guatemala was highlighted . finally , educational programs aimed at training prospective adoptive parents in guatemala might include segments on promoting cultural diversity as well .
for transracial and / or multicultural families to discuss this unique aspect of adoption—domestic or international .
guatemala’s adoption business took off in the 1970s , when a civil war displaced hundreds of thousands , including many children . a 1977 law allowing notaries to facilitate adoptions helped shape an industry where anything went . after the war ended in 1996 the number of overseas adoptions rocketed . americans and europeans swooped in to adopt supposed orphans , unaware that many had been stolen from their families .
the money & the attorneys . money was the key to international adoption in guatemala . the country closed to international adoption on january 1 , 2008 , so that its system could be reformed . until then , during the early years of the millennium , roughly 98 percent of international adoptions from guatemala went through private “notarios , ” attorneys who had the legal power to oversee both sides in the adoption . a single notario could witness the birthmother signing away her parenthood and could legally assign the child to foreign parents , for a sizable fee—all without any oversight , intervention , review , or questions from a judge or social service agency .
[ 1 ] from “intercountry adoption guatemala , ” from the u . s . state department’s online guide for prospective adoptive parents , september 2007 ( accessed 10 / 21 / 2008 ) . the relevant paragraph reads :
this is sort of off - topic but i have been thinking a lot about what i want to do with my life once i graduate from college and all of my plans seem to have something to do with guatemala but i ' m not really sure what . i would love to adopt from there but obviously , that is not an option . i have also thought about trying to become a teacher there once i graduate but i am quite the homebody and i ' m not sure if that would be possible . i remember reading on here about a family that moved to guatemala to foster the child they were adopting and while they were there , they completed a domestic adoption but i can ' t seem to find their name or the post about them . does anyone know how long a person must live in gautemala before they can file for domestic adoption or how long a domestic adoption would take in guatemala ? if i could ever bring myself to live there ( depending on the length of time i would have to ) , i would consider trying to adopt there as well as teaching while i would be in the country . sorry that this is so long , i was just wondering if anyone had any information on domestic adoption in guatemala or if anyone knows of anyone else who has completed a domestic adoption in guatemala and how long it took them . thanks in advance for any information !
few development types have noticed . they pay little attention to international adoption , arguing that most vulnerable children in poor countries need not a new family but support in their current one . they point to how guatemala , for example , devotes less than 3 . 4 % of its gdp to public spending that directly helps children and adolescents , the lowest rate in central america . “adoption is a symptom of a society that can’t care for its children , ” adds ms briggs .
at the heart of the case is the claim that karen is really anyelí , a girl who was allegedly abducted in november 2006 from her family in guatemala . a guatemalan woman named loyda rodríguez claims to be the girl’s birth mother .
by the time guatemala closed to u . s . adoption , these notarios were charging $ 35 , 000 or more per adopted child , 1 plus monthly “foster care” fees while the children were housed in private “hogars” or foster homes between families—foster homes managed by the attorney .
erin siegal mcintyre : in guatemala , it was so , so easy to manufacture paperwork , manufacture an identity , pay off a judge , pay off a lawyer . the vast majority of adoption cases did have irregularities . this industry was pretty much corrupt to the core .
after international adoption stopped , there were raids and investigations of some of the adoption centers , including the one founded by nancy bailey . she was charged with human trafficking in 2012 in absentia and arrested when she returned to the country for a visit in 2014 . her son , 42 - year - old joel peters , says bailey had fought hard to keep the kids in her project out of government custody .
[ 8 ] in addition to the specifically cited sources , more information about this sequence of events can be found at the websites of two organizations concerned with international adoption : the joint council on international children’s services ( jcics ) ’s guatemala page and at ethica , inc . , ’s guatemala page . other information comes from the news articles pointed to later in this section . additional information comes from interviews on file with the schuster institute for investigative journalism .
various schemes used by adoption facilitators and lawyers to separate guatemalan children from their birthparents ; then , as
orphans
these children were made available for adoption to unknowing american prospective families .
he says the judge in guatemala concluded , based on available dna evidence , that this is the same child , yet authorities are also demanding that a new dna test be conducted .
in november , the carrs packed a green suitcase full of socks , underwear , legos and coloring books for geovany and flew back for four full days here , determined to make some headway on their ninth trip to guatemala in five years .
neither attitudes toward ladino persons , nor social distance from either of the ethnic groups was associated with attitudes toward adoption . adoption attitudes were also not associated with participants’ own ethnic identification , although this sample was highly identified with ladino ethnicity . as in most other studies of gender and adoption attitudes ( evan b . donaldson institute 2002 ; gibbons et al . 2006a , b ) , women held more favorable attitudes toward adoption than did men , and female gender was associated with more positive attitudes toward adoption as the analysis of covariance revealed .
the mexican government has shown commitment and a positive outlook towards international adoption . over the past year , mexico authorized nine new adoption service providers , from the originally approved three agencies . this is a huge increase and a showing that mexico is open to doing more than just a few adoptions per year . in addition , the government in mexico has conducted training session on adoptions under the hague convention and trainings for in the mexican attorneys processing adoptions in the country . for the government to go out of their way to provide such training indicates not only a commitment to safeguarding adoption , but also to further international adoption as a permanent option for children without families in mexico .
alex and dominic ' s touching story of their guatemalan adoption journey to find their son jose .
there were significant gender differences with respect to three measures . women showed more positive attitudes toward indigenous on the aig . they also reported more favorable attitudes toward adoption on both the modified abs and on the single question about adoption in general . see table
potential disaster struck in the autumn ( 2007 ) . the president of guatemala announced that as of 1 st january 2008 he was suspending inter - country adoptions from guatemala , and the british government followed suit with a statement saying that they in turn were suspending all adoptions from guatemala into the uk , with immediate effect . we were desperately concerned that we would not be able to bring josé home , and the latter part of 2007 was largely spent fighting battles with both the guatemalan and the british authorities .
based on the guidelines of the convention on the rights of the child ( office of the united nations high commissioner for human rights 1989 ) , and the conviction that every child deserves a family , the hague convention requires a stepwise process known as the subsidiarity principle . local options , including placement within the child’s extended family , as well as domestic adoption , must be exhausted before turning to ica placement . the guatemalan law reads : “international adoption can only proceed after appropriate consideration of possibilities for national ( domestic ) adoption” ( congreso de la república de guatemala 2007 ; equipo de investigación 2008 ) . because formal adoption among guatemalans has been extremely rare in the past ( bunkers et al . 2009 ) additional ways of promoting and facilitating domestic adoption must be pursued . a step towards this goal is identifying the barriers , both procedural and attitudinal , to domestic adoption of children . the cna might then address those barriers to find adoptive placements for the over 4000 children currently living in institutions in guatemala ( groza and bunkers 2014 ) .
american to stand trial over guatemalan adoptions guatemala was once one of the world ' s most popular adoption destinations , but stopped the practice after mass corruption was exposed . an american woman is set to stand trial over related charges .
while in the u . s . , prospective families are required to prepare an adoption dossier ( a set of documents required for adoption processing by local authorities abroad ) . for guatemala , dossier includes uscis ( former ins ) permission to adopt internationally , homestudy prepared by a licensed agency and a number of documents verifying family marital status , income , health condition , criminal history , etc .
there are several limitations to the present study , including the use of university students as participants . in guatemala university students represent a highly privileged sample , as only 4 % of the population has the opportunity to receive a university education ( pnud 2005 ) . nevertheless , the educational elite of guatemala represents the population that is mostly likely to have the resources to adopt children , and thus their attitudes have implications for adoption policy .
[ 5 ]
adoptions in guatemala : protection or business ? ” by casa alianza foundation and myrna mack survivors foundation , with the support of the social movement for the rights of children and adolescents ; human rights office of the archbishop of guatemala ( odhag ) ; and guatemalan social welfare secretariat ( sbs ) , november 2007 .
and we ' ll get them answered for you . you want to get the adoption process started ?
whatley m , jahangardi jn , ross r , knox d . college student attitudes toward transracial adoption .
reports of serious irregularities continued to mount . in 2000 , unicef commissioned the latin american institute for education and communication ( ilpec ) to conduct a study of adoption and the rights of the child in guatemala . the ilpec report concluded that these direct and private adoptions were what they called a “labor market” conducted for financial gain , not for the child’s best interests .
cutting a very long story short , following a lengthy campaign , we were one of only a handful of lucky families that were allowed to bring our children home in spite of the fact that inter - country adoptions had ceased to take place from guatemala to the uk . we were incredibly lucky but the future remains bleak for many babies and children in guatemala – it is a real humanitarian crisis .
note : this page from the schuster institute for investigative journalism website offers documentation of and background about serious irregularities in international adoption . for the systemic analysis of corruption in international adoption , please read “the lie we love , ” foreign policy magazine , nov . / dec . 2008 , and visit our webpages dedicated to international adoption . for ideas about fairer policy solutions , please read “the baby business , ” democracy journal , summer 2010 .
“zero tolerance for adoption abuses may sound good but it will hurt children , ” says elizabeth bartholet , a professor at harvard school of law , who wrote a 2010 report titled international adoption : the human rights position . “the evils involved in such abuses must be weighed against the far more significant evils involved in denying children homes . ”
but attitudinal barriers may also play a role . for example , in a number of studies women have been shown to hold more positive attitudes toward adoption than do men ( e . g . , evan b . donaldson 2002 ) . both in guatemala and the united states the gender difference in attitudes was mediated by machismo , the endorsement of an extreme masculinity along with sexist beliefs about women ( gibbons et al . 2006a , b ) . persons who held more egalitarian gender role attitudes and endorsed machismo less were more positive about adoption .
enroll in the smart traveler enrollment program ( step ) to receive alerts and make it easier to locate you in an emergency .
orphaned or stolen ? the u . s . state dept . investigates adoption from nepal , 2006 - 2008
moos a , mwaba k . beliefs and attitudes about transracial adoption among a sample of south african students .
guatemala has long become a popular choice for adoptions , especially for families who want younger children or can afford to make only one short trip . in private adoptions , children can be referred at birth and if the adoption process moves quickly , arrive home in 5 - 6 months . private foster care and good healthcare system ensure most children are healthy and well - nourished . special - needs and older children often end up in orphanages , or
hogars
, and although their adoption is sometimes more difficult , it is always rewarding despite its challenges .
in response to the favorability of the different kinds of adoption , there were also significant differences . a repeated measures anova demonstrated a significant main effect for type of adoption , f ( 3 , 167 ) = 32 . 02 , p < 0 . 001 , partial η 2 = 0 . 16 , with the most favorable attitudes expressed toward adoption in general ( m = 3 . 61 ± 0 . 52 ) , followed by international adoption ( m = 3 . 53 ± 0 . 69 ) , adoption of indigenous by ladinos ( m = 3 . 40 ± 0 . 64 ) , and adoption of ladinos by indigenous ( m = 3 . 08 ± 0 . 77 ) ; t - tests were conducted as post - hocs using the bonferroni procedure to correct for multiple tests . interethnic adoption of indigenous by ladinos was viewed significantly less favorably than adoption in general , t ( 169 ) = 3 . 86 , p < 0 . 001 , 95 % ci δ = [ 0 . 09 , 0 . 29 ] , and adoption of ladinos by indigenous was viewed less favorably than all other kinds of adoption , including adoption in general , t ( 169 ) = 8 . 37 , p < 0 . 001 , ci δ [ 0 . 40 , 0 . 65 ] , intercountry adoption , t ( 172 ) = 6 . 72 , p < 0 . 001 , 95 % ci δ [ 0 . 31 , 0 . 58 ] , and adoption of indigenous by ladinos , t ( 172 ) = 5 . 96 , p < 0 . 001 , 95 % ci δ [ 0 . 22 , 0 . 43 ] .
“my view is that the government of guatemala shouldn’t be able to have it both ways . that’s not really very fair , ” genser says .
it was hard to make a decision as to which country to approach . so many children out there were in need of a home and we received no guidance from our local authority or other government bodies . eventually we narrowed our search to guatemala , one of the poorest countries in the americas , which has a large number of babies and young children who are relinquished by their birth mothers , largely due to poverty . guatemala seemed to be a “tried and tested” route with a number of other uk families having adopted children from the country – there was even a support group in england for families who had adopted from guatemala .
the alg ( attitudes toward ladinos of guatemala ) is a 14 - item scale designed to measure attitudes toward the ladino ethnic group in guatemala . items such as “ladinos deserve a good economic situation because of their effort” are rated on a 4 - point scale from strongly agree to strongly disagree . higher scores represent more positive attitudes . cronbach’s alpha in the development of the scale was 0 . 79 ( gibbons and ashdown 2010 ) and in the present study it was 0 . 68 .
some of the barriers to domestic adoption in guatemala are societal and structural—widespread poverty , a high birth rate , and lack of knowledge or publicity about the legal requirements and procedures for adopting ( bunkers et al . 2009 ; gibbons et al . 2009 ; wilson and gibbons 2005 ) . the lack of information about the adoption process is currently being addressed by the cna ; this entity has initiated efforts to promote domestic adoption and to educate the public through a website , facebook page , and free seminars and workshops aimed at prospective adoptive parents .
m . martin : if she is found guilty , nancy bailey could spend six to 12 more years in prison , sharing a cell - like she does now - with as many as five other women . for npr news , i ' m maria martin in antigua , guatemala .
one consequence is that couples in the rich world find it harder to adopt a baby from a poor country . another is a debate about the place of cross - border adoption in broader attempts to help children in poor countries . advocates see it as the only way to save “hard - to - place” children—older , with severe health problems or in sibling groups—from life in an institution . critics note that some children adopted into a different culture later feel unhappy about having been uprooted . some also dismiss overseas adoption as a distraction from other ways of reducing poverty .
the seamier side of international adoption ,
the new york times opinion blog , may 10 , 2009 .
urltoken is not a licensed adoption agency or facilitator and it does not provide professional , legal or medical advice . it does not place children for adoption or match birth parents and adoptive parents . users of urltoken agree to the


a swap execution facility ( sef ) ( sometimes swaps execution facility ) is a platform for financial swap trading that provides pre-trade information ( i.e. bid and offer prices ) and a mechanism for executing swap transactions among eligible participants .

swap execution facilities are regulated by the securities and exchange commission and the commodity futures trading commission .

the regulated trading of certain swaps is a result of requirements in the united states by the dodd – frank wall street reform and consumer protection act ( in particular title vii ) .

financial swaps have traditionally been traded in over-the-counter ( otc ) markets .

however , regulatory changes have driven reporting , clearing , and settlement functions to sefs , which are much more tightly regulated .

the sef-execution mandate responds to one of the four derivatives-related european union , have proposed similar changes in swap market structure but none have yet been adopted .

as of october 2 , 2013 , any swap listed by a sef may be traded by the parties on the sef , but may also be traded off-sef in any other lawful manner .

the swaps that must be traded on sefs are both subject to a cftc-centralized clearing mandate and have been determined to be " made available to trade " ( mat ) by at least one sef .

four categories of interest rate swaps and two categories of credit default swaps are currently subject to clearing mandates .

swap execution facility

( 2 ) listing requirement . a swap execution facility that makes a swap available to trade must demonstrate that it lists or offers that swap for trading on its trading system or platform .
( sec . 733 ) requires a swaps trading or processing facility to : ( 1 ) be registered as either a swap execution facility or as a designated contract market ; and ( 2 ) maintain a risk analysis and oversight program . prescribes core principles for swap execution facilities .
( d ) removal— ( 1 ) determination . the commission may issue a determination that a swap is no longer available to trade upon determining that no swap execution facility or designated contract market lists such swap for trading .
docket number : cftc - 2013 - 0055 docket name : process for a designated contract market or swap execution facility to make a swap available to trade , etc . docket rin 3038 - ad18
( b ) factors to consider . to make a swap available to trade , for purposes of section 2 ( h ) ( 8 ) of the act , a swap execution facility shall consider , as appropriate , the following factors with respect to such swap :
is 360t registered as a swap execution facility ( sef ) ? yes , 360t was granted full sef registration by the us commodity futures trading commission ( cftc ) on 22 january 2016 .
( c ) applicability . upon a determination that a swap is available to trade on any swap execution facility or designated contract market pursuant to part 40 of this chapter , all other swap execution facilities and designated contract markets shall comply with the requirements of section 2 ( h ) ( 8 ) ( a ) of the act in listing or offering such swap for trading .
209 . see core principles and other requirements for swap execution facilities ( may 16 , 2013 ) .
230 . see core principles and other requirements for swap execution facilities ( may 16 , 2013 ) .
swap dealers and major swap participants may have their own reporting obligations under the cftc regulation .
( c ) applicability . ( 1 ) upon a determination that a swap is available to trade on any designated contract market or swap execution facility pursuant to part 40 of this chapter , all other designated contract markets and swap execution facilities shall comply with the requirements of section 2 ( h ) ( 8 ) ( a ) of the act in listing or offering such swap for trading .
sec proposes rules for security - based swap execution facilities ; 2011 - 35 ; feb . 2 , 2011
finally , the commission notes that a trading facility could still clear and list a swap for trading after it is determined to be subject to the trade execution requirement , but prior to the effective date .
other commenters asserted that the clearing determination considers a swap ' s trading liquidity and therefore already addresses whether the swap should be subject to mandatory trade execution .
specifies general duties for registered security - based swap dealers and major security - based swap participants .
i respectfully dissent from the commission ' s approval today of the rule establishing process for a designated contract market or swap execution facility to make a swap available to trade under section 2 ( h ) ( 8 ) of the commodity exchange act ( cea ) .
prohibits the board from establishing any program or facility without the prior approval of the secretary of the treasury .
grants the sole right to select the clearing agency at which a security - based swap will be cleared to a person that is not a swap dealer , major swap participant , security - based swap dealer , or major security - based swap participant but is counterparty to such a swap that is subject to the mandatory clearing requirement and entered into by a security - based swap dealer or a major security - based swap participant .
the dodd - frank act defines a swap execution facility ( sef ) .
a facility , trading system or platform in which multiple participants ( can ) execute or trade swaps by accepting bids and offers made by other participants that are open to multiple participants in the facility or system , through any means of interstate commerce .
in short , there are now several approved platforms under the sef umbrella which allow for multiple bids and offers .
the us commodity futures trading commission ( cftc ) has granted blockchain startup ledgerx its formal registration as a swap execution facility ( sef ) , making it the second company ever to be granted the ability to trade digital currency derivatives .
definition of a security - based swap execution facility ( sb - sef ) : a system or platform that allows more than one participant to interact with the trading interest of more than one other participant on the system or platform .
at its december 5 , 2011 open meeting , the cftc approved a proposed rulemaking that would further define the process by which a swap execution facility or designated contract market shall make a swap
available for trade
under section 2 ( h ) ( 8 ) of the commodity exchange act .
security - based swap repositories : proposed rules regarding the registration and regulation of security - based swap data repositories .
the commodity futures trading commission ( “commission” ) is adopting regulations that establish a process for a designated contract market ( “dcm” ) or swap execution facility ( “sef” ) to make a swap subject to the trade execution requirement pursuant to the commodity exchange act ( “cea” ) . the commission is also adopting regulations to establish a schedule to phase in compliance with the trade execution requirement . the schedule will provide additional time for compliance with this requirement .
security - based swap conflicts : proposed rules intended to mitigate conflicts of interest for security - based swap clearing agencies , security - based swap execution facilities , and national securities exchanges that post security - based swaps or make them available for trading .
on may 16 , 2013 , the cftc approved a final rule that sets the process by which a designated contract market or swap execution facility shall make a swap
available to trade .
the rule entered the federal register on june 4 , 2013 ; its effective date is august 5 , 2013 .
( sec . 1109 ) directs the comptroller general to conduct a one - time audit of , and report to congress on , all financial assistance provided between december 1 , 2007 , and the date of enactment of this act by either the board or a federal reserve bank under the asset - backed commercial paper money market mutual fund liquidity facility , the term asset - backed securities loan facility , the primary dealer credit facility , the commercial paper funding facility , the term securities lending facility , the term auction facility , maiden lane , maiden lane ii , maiden lane iii , the agency mortgage - backed securities program , foreign currency liquidity swap lines , and certain other programs . requires the board to publish on its website specified information about such assistance and its recipients .
requires : ( 1 ) each swap to be reported to a registered swap data repository ; and ( 2 ) public reporting on a semiannual and annual basis of aggregate swap data .
establish and enforce rules governing , among other things , the terms and conditions of security - based swaps traded on their markets ; any limitation on access to the facility ; trading , trade processing and participation ; and the operation of the facility .
security - based swap reporting : proposed new rules entailing how security - based swap transactions should be reported and publicly disseminated .
( a ) ( 1 ) required submission . a swap execution facility that makes a swap available to trade in accordance with paragraph ( b ) of this section , shall submit to the commission its determination with respect to such swap as a rule , as that term is defined by § 40 . 1 of this chapter , pursuant to the procedures under part 40 of this chapter .
* the u . s . commodity futures trading commission ( cftc ) has approved the application of chicago mercantile exchange inc . ( cme sef ) for temporary registration as a swap execution facility ( sef ) pursuant to cftc regulation 37 . 3 ( c ) .
a swap execution facility ( sef ) is a platform that allows participants to buy and sell swaps in a regulated and transparent manner . through a mandate in the dodd - frank wall street reform and consumer protection act , sefs change the methods previously used to trade derivatives .
before dodd - frank , the trading of swaps was traded exclusively in over - the - counter markets with little transparency or oversight . as a result , the expected role of the swap execution facility allows for transparency and provides a complete record and audit trail of trades .
swap execution facilities , or sefs , are electronic trading platforms for over - the - counter ( otc ) derivatives . sefs were mandated by us
sec proposes rules for security - based swap execution facilities . u . s . securities and exchange commission . retrieved on february 4 , 2011 .
the rules governing the execution of swap indices on sefs were finalised on 16 may 16 2013 . the key dates relating to these rules are :
swaps execution facilities ( sefs ) | u . s . commodity futures trading commission
separately , various market participants have submitted to the commission and the division comments and requests regarding the implementation of the trade execution requirement with respect to “package transactions , ” or transactions involving more than one swap or financial instrument and at least one swap subject to the trade execution requirement . the division clarifies that the inclusion of a swap subject to the trade execution requirement in a multi - legged transaction would not per se relieve market participants of the obligation to trade such swap through a dcm or sef .
cftc announces measures to promote trading on swap execution facilities and support an orderly transition to mandatory trading . cftc . retrieved on february 11 , 2014 .
i support the final rulemaking to implement a process for swap execution facilities ( sefs ) and designated contract markets ( dcms ) to “make a swap available to trade” ( mat ) . today ' s rule also finalizes the commission ' s separate rule proposal to phase in compliance for the trade execution requirement .
all swaps that have been ‘made available to trade’ ( mat ) by any swap execution facility ( sef ) or board of trade designated as a contract market ( dcm ) must be traded on a sef or dcm . these swaps are a sub - set of those subject to the cftc’s clearing mandate ;
210 . see procedures to establish appropriate minimum block sizes for large notional off - facility swaps and block trades ( may 16 , 2013 ) .
( sec . 716 ) prohibits federal assistance to a swaps entity with respect to any swap , security - based swap , or other activity . excludes from the definition of
swaps entity
any major swap participant or major security - based swap participant that is an insured depository institution .
section 723 ( a ) ( 3 ) of the dodd - frank act added section 2 ( h ) ( 8 ) of the commodity exchange act ( “cea” ) to require that swap transactions subject to the clearing requirement must be traded on either a designated contract market ( “dcm” ) or swap execution facility ( “sef” ) , unless no dcm or sef “makes the swap available to trade” or the transaction is not subject to the clearing requirement under section 2 ( h ) ( 7 ) ( the “trade execution requirement” ) . [ 1 ]
title xvi : section 1256 contracts - amends the internal revenue code to exclude from the definition of a section 1256 contract any interest rate swap , currency swap , basis swap , interest rate cap , interest rate floor , commodity swap , equity swap , equity index swap , credit default swap , or similar agreement . ( thus shields such instruments from treatment as sold for its fair market value [ marked to market ] on the last business day of the taxable year for capital gains or loss taxation purposes ) .
defining security - based swap terms : proposed jointly with the commodity futures trading commission new rules that would further define a series of terms related to the security - based swaps market , including
swap dealer ,
security - based swap dealer ,
major swap participant ,
major security - based swap participant
and
eligible contract participant .
as such , dodd - frank requires security - based swap transactions that are required to be cleared through a clearing agency to be executed on an exchange or on a new trading system called a security - based swap execution facility . the dodd - frank act , however , states that the transaction need not be executed on a security - based sef or exchange if no security - based sef or exchange makes the security - based swap
available to trade .
dodd - frank requires any swap subject to the clearing mandate to be traded and executed either on a new type of regulated trading platform called a swap execution facility ( sef ) or on a regulated trading platform on which futures have traditionally traded ( a designated contract market , or dcm ) . a swap that is not required to be executed on a regulated trading platform could continue to be executed either bilaterally or through voice brokers that are not regulated as sefs .
directs the cftc to adopt data collection and maintenance requirements for swaps cleared by dcos that are comparable to the corresponding requirements for : ( 1 ) swaps data reported to swap data repositories ; and ( 2 ) swaps traded on swap execution facilities .
the trade execution mandate was designed to promote transparency and market liquidity . in contrast to the clearing mandate — and as acting chairman giancarlo noted in his 2015 white paper on sef rules — dodd - frank contemplates no process for , or even issuance of , a determination of which swaps are
made available to trade
( mat ) . rather , the statute simply provides that a swap that is required to be cleared must be traded and executed on an sef or dcm unless
no board of trade or swap execution facility makes the swap available to trade .
( sec . 726 ) requires the cftc to adopt conflict of interest rules which may include numerical limits on the control of , or the voting rights with respect to , any dco that clears swaps , or swap execution facility or board of trade designated as a contract market that posts swaps or makes swaps available for trading , by a bank holding company with total consolidated assets of $ 50 billion or more , a nonbank financial company supervised by the board , an affiliate of such a bank holding company or nonbank financial company , a swap dealer , major swap participant , or associated person of a swap dealer or major swap participant .
prescribes rules for the conduct of swaps or security - based swap activities by a bank or bank holding company permitted to be or become a swap entity .
title vii : wall street transparency and accountability - wall street transparency and accountability act of 2010 - subtitle a : regulation of over - the - counter swaps markets - part i : regulatory authority - ( sec . 712 ) directs the commodity futures trading commission ( cftc ) and the sec to consult and coordinate with one another and with the prudential regulators before commencing any rulemaking or issuing an order regarding swaps , swap dealers , major swap participants , swap repositories , persons associated with a swap dealer or major swap participant , eligible contract participants , or swap execution facilities .
swap execution facilities ( sefs ) were given life by the dodd - frank act , which requires over - the counter ( otc ) swaps to be cleared and traded on this new type of regulated platform . any swap that is
made available to trade
must trade on designated contract market or a sef . the cftc has been given the responsibility to monitor swap execution facilities ; the sec has jurisdiction over security - based sefs .
a swap dealer is an individual who acts as the counterparty in . . .
the commission believes that an initial determination that a swap is available to trade should be made by a sef or a dcm that offers the swap for trading .
on january 7 , 2011 , the cftc offered its proposed rules regarding swap execution facilities . the open period for comment letters ran from from january 7 to march 8 , 2011 .
the commodity futures trading commission is correcting a final rule that appeared in the federal register of june 4 , 2013 ( 78 fr 33476 ) . the final rule applies to the registration and operation of a new type of regulated entity named a swap execution facility , and implements provisions of the dodd - frank wall street reform and consumer protection act .
learn about the history of swap agreements , the first swap agreement between ibm and the world bank , and how swaps have evolved . . . read answer > >
4 . swap transaction compliance and implementation schedule : clearing and trade execution requirements under section 2 ( h ) of the cea , 76 fr 58186 ( sep . 20 , 2011 ) .
cme group has received temporary registration as a swap execution facility ( sef ) in addition to our current exchanges and trading platforms . our sef is governed by the sef rulebook . our offering will provide the greatest operational flexibility possible to meet our customers needs . we will initially launch with commodities and we are currently evaluating additional asset classes based on customer demand .
( sec . 763 ) amends the securities exchange act of 1934 to prescribe requirements for clearing procedures and execution of security - based swaps , including requirements for : ( 1 ) swap execution facilities ; ( 2 ) segregation of assets held as collateral in security - based swap transactions ; and ( 3 ) position limits and accountability for security - based swaps and large trader reporting .
have rules and procedures to ensure the financial integrity of security - based swaps entered on or through the facility , including the clearance and settlement of security - based swaps .
on february 10 , 2014 , the commission issued no - action relief from the mandatory execution requirement for swaps that are part of a
package transaction
- transactions involving more than one swap or financial instrument ( often referred to as “component legs” ) and at least one swap subject to the trade execution requirement . the letter offers relief until may 15 , 2014 . view letter .
the cftc made its first determinations on january 16 , 2014 , making february 15 , 2014 the date at which the first swaps will be subject to the execution requirements . subsequent determinations were made on january 26 and 28 . for more information on rulemakings related to swap execution facilities , click here .
other commenters thought that the process would create uncertainty as to which swaps are subject to mandatory trade execution .
several commenters recommended that the trade execution requirement should become effective only after the clearing requirement is fully implemented .
mandatory trade execution , would not require the commission , or a sef or dcm to expend any resources .
the commission is not adopting a separate process for a sef or dcm to submit a determination that a swap is no longer available to trade . rather , the commission believes that where all sefs and dcms that had listed a swap for trading , including the sef or dcm that submitted the initial available - to - trade determination under part 40 , no longer list that swap for trading on their respective facility or platform , ( i . e . , all such sefs and dcms have “de - listed” the swap ) , [ 140 ] then the commission would deem the swap to be no longer available to trade . in such a case , trading in the swap would no longer be subject to the trade execution requirement . the commission believes that this approach is consistent with section 2 ( h ) ( 8 ) of the cea , which states a swap would otherwise not be subject to the trade execution requirement if , among other things , no sef or dcm makes it available to trade .
the final rule promotes the trading of swaps on sefs and dcms by establishing a process that specifies when a swap is available to trade ; once a swap is deemed available to trade , that swap must be traded on a sef or dcm if it is subject to the clearing requirement . accordingly , the adopted process will promote market efficiency and competitiveness by ( 1 ) informing market participants of when the trade execution requirement applies and ( 2 ) prescribing the methods by which all market participants may execute a particular swap , depending on whether the trade execution requirement applies .
part ii : regulation of swap markets - ( sec . 722 ) amends the cea with respect to cftc exclusive jurisdiction over accounts , agreements and transactions involving swaps , and contracts of sale executed on a swaps execution facility . states that such cftc jurisdiction limits neither the jurisdiction conferred by this act upon the sec with respect to security - based swap agreements and security - based swaps , nor sec authority with respect to related agreements , contracts , or transactions .
as i explain below , the rule provides illusory comfort that the commission will have a legal authority to review and , if necessary , challenge a mandatory trading determination made by a swap execution facility ( sef ) or designated contract market ( dcm ) . in fact , the only authority that the commission has is to “rubber stamp” a sef or dcm ' s initial determination .
proposed §§ 37 . 10 ( c ) ( 1 ) and 38 . 12 ( c ) ( 1 ) required that upon the commission deeming that a swap is available to trade based on a sef or dcm submission , all other sefs and dcms listing or offering for trading such swap and / or any economically equivalent swap must make those swaps available to trade for purposes of the trade execution requirement under section 2 ( h ) ( 8 ) of the cea . the commission defined “economically equivalent swap” under proposed §§ 37 . 10 ( c ) ( 2 ) and 38 . 12 ( c ) ( 2 ) as a swap that the sef or dcm determines to be economically equivalent with another swap after consideration of each swap ' s material pricing terms . the commission also noted that if a dcm or sef makes a swap available to trade , then the proposed rule would not require other dcms and sefs to list or offer that swap , or an economically equivalent swap , for trading .
ici stated that applying the determination to only one sef or dcm would be inconsistent with the trade execution requirement .
security - based swap fraud : proposed a new rule to help prevent fraud , manipulation , and deception in connection with the offer , purchase or sale of any security - based swap as well as in connection with ongoing payments and deliveries under a security - based swap .
( sec . 728 ) requires a person to register with the cftc as a swap data repository regardless of whether the person is also licensed as a bank or registered with the sec as a swap data repository . allows a dco to register as a swap data repository . prescribes requirements and duties for swap data repositories , including designation of a chief compliance officer .
in order to further consider any operational issues concerning the building of transaction order entry and execution technology to facilitate the trading of such package transactions , consistent with the trade execution requirement , acting chairman mark wetjen has directed the division to hold a public roundtable on execution issues related to package transactions . based upon public input , the division will consider whether and under what conditions to grant limited relief for package transactions to ensure proper implementation of the execution mandate .
the process set forth in §§ 37 . 10 and 38 . 12 will advance the congressional goal of promoting swap execution and developing a centralized trading market that facilitates price discovery in the manner as described below .
a dormant swap execution facility defined in cftc regulation 40 . 1 ( f ) , is any sef on which no trading has occurred during a period of twelve consecutive calendar months , preceding the first day of the most recent calendar month . however , no sef shall be considered to be dormant if its initial and original commission order of registration was issued within the preceding 36 consecutive calendar months .
maintain records of activity relating to the facility ' s business , including a complete audit , for a period of five years and to report such information to the commission , upon request .
( 2 ) listing requirement . a designated contract market that makes a swap available to trade must demonstrate that it lists or offers that swap for trading on its trading system or platform .
for reasons discussed below , the cost and benefits associated with requiring mandatory trade execution immediately upon making a swap available to trade and requiring it to be cleared , or after some longer versus shorter period of delay , are not susceptible to meaningful quantification . costs and benefits associated with trade execution are independent of costs and benefits of implementing mandatory trade execution itself and pertain exclusively to the pace of implementation . the commission is not aware of any analog ,
sets forth registration and oversight requirements governing security - based swap execution facilities . allows dual registration with the cftc . permits trading by such facilities only in security - based swaps that are not readily susceptible to manipulation .
a stock swap is the exchange of one equity - based asset for another . . . .
90 . as noted above , the commission believes that the mere listing or offering for trading of a swap on a dcm or sef does not mean that the swap is available to trade .
( sec . 1102 ) . authorizes the comptroller general to conduct audits and onsite examinations , if appropriate , of the federal reserve board , a federal reserve bank , or a credit facility , solely for the purposes of assessing : ( 1 ) the operational integrity , accounting , financial reporting , and internal controls governing special federal reserve credit facilities or a covered transaction ( any open market transaction or discount window advance ) ; ( 2 ) the effectiveness of the security and collateral policies established for the facility or covered transaction in mitigating risk to the federal reserve bank and taxpayers ; ( 3 ) whether the credit facility or the conduct of a covered transaction inappropriately favors one or more specific participants over other institutions eligible to utilize the facility ; and ( 4 ) the policies governing the use , selection , or payment of third - party contractors by or for any credit facility or to conduct any covered transaction . requires the comptroller to report to congress on each such audit .
( sec . 765 ) directs the sec to adopt conflict of interest rules with respect to security - based swaps clearing agencies , security - based swap execution facilities , national securities exchanges that post or make security - based swaps available for trading , bank holding companies with total consolidated assets of $ 50 billion or more , nonbank financial companies supervised by the federal reserve board , and affiliates of such a bank holding company or nonbank financial company , a security - based swap dealer , major security - based swap participant , or person associated with a security - based swap dealer or major security - based swap participant .
69 . the commission notes that such swap would be certified or approved under § 40 . 2 or § 40 . 3 of the commission ' s regulations prior to listing the swap for trading .
washington , dc — the commodity futures trading commission ( cftc or commission ) division of market oversight ( division ) today announced that javelin sef , llc’s ( javelin ) self - certification of available - to - trade determinations ( mat determinations ) for certain interest rate swap contracts , as described below , is deemed certified . under commission regulations , the swaps that are subject to these mat determinations , whether listed or offered by javelin or any other designated contract market ( dcm ) or swap execution facility ( sef ) , will become subject to the trade execution requirement under section 2 ( h ) ( 8 ) of the commodity exchange act 30 days after certification , on february 15 , 2014 . all transactions involving swaps that are subject to the trade execution requirement , as described below , must be executed through a dcm or a sef . to the extent that swaps subject to the trade execution requirement are executed on a sef , they must be executed in accordance with the execution methods prescribed by commission regulation .
block trade thresholds for swaps vary by instrument and are based on the tenor and spread of the swap . block trades are exempt from the minimum execution methods of required transactions but must be processed on a sef or dcm .
subtitle b : regulation of security - based swap markets - ( sec . 762 ) amends the gramm - leach - bliley act to repeal the prohibition against regulation of a security - based swap agreement .
with respect to marketaxess ' s comment , the commission does not believe that the costs associated with the determination process pose a barrier to entry for trading platforms . the rule does not affirmatively require a sef or dcm to first submit to the commission that a swap is available to trade via a part 40 filing in order to list or offer that swap for trading on its platform . if one sef or dcm makes the swap available to trade through the part 40 process , then other sefs and dcms who subsequently choose to list or trade the swap are only required to do so through methods of execution consistent with the trade execution requirement . the commission notes that in order to register and operate as a sef , a trading platform or facility must already be able to demonstrate that they offer certain minimum functionality in terms of methods of execution ( i . e . , a central limit order book ( “clob” ) or request - for - quote ( “rfq” ) system ) . [ 230 ]
final §§ 37 . 12 and 38 . 11 establishes a compliance schedule following a determination that a swap is subject to the trade execution requirement under section 2 ( h ) ( 8 ) of the cea . market participants are required to comply with the trade execution requirement upon the later of ( 1 ) the applicable deadline established under the compliance and implementation schedule for the clearing requirement for a swap under section 2 ( h ) ( 1 ) of the cea ; [ 282 ] or ( 2 ) 30 days after the swap is first made available to trade on either a sef or dcm . absent this final rule , market participants would have been required to comply with the trade execution requirement immediately after a swap is determined to be available to trade and required to be cleared . to provide further flexibility to registrants and market participants , the commission is exercising its discretion to stagger implementation of the trade execution requirement .
the cftc has proposed , and in many cases finalized , new rules , guidance and acceptable practices to implement the new section 5h to the commodity exchange act ( cea ) concerning the registration and operation of sefs , as well as new section 2 ( h ) ( 8 ) to the cea concerning the listing , trading and execution of swaps on sefs . these regulations will require , among other things , that swaps subject to the clearing requirement of section 2 ( h ) ( 1 ) be executed on either designated contract market ( dcm ) or a swap execution facility , unless no dcm or sef
made the swap available for trading .
[ 3 ]
the commodity futures trading commission staff announces trade execution mandate for certain interest rate swaps | u . s . commodity futures trading commission
the trade execution requirement at the same time , rather than through a phased - in approach , to avoid fragmenting market liquidity .
proposed §§ 37 . 10 ( c ) and 38 . 12 ( c ) required that upon a determination that a swap is available to trade by a sef or dcm , all other dcms and sefs listing or offering that swap or an economically equivalent swap for trading must also make those swaps available to trade .
the legal action came after many in the swaps industry had raised concerns that the cftc was pushing the trading of otc derivatives towards exchanges , rather than the swap execution facilities ( sefs ) created as a result of dodd - frank .
required transactions are certain ‘made available to trade’ ( mat ) cds transactions not subject to a block trade exemption that comply with the trade execution mandate under dodd frank . these swaps must be executed on a sef or dcm using one of the minimum execution methods .
( such as a mat swap vs . a single name cds or cash bond on the secondary market )
on feb . 2 , 2011 , the securities and exchange commission voted unanimously to propose rules defining security - based swap execution facilities ( sefs ) and establishing their registration requirements , as well as their duties and core principles . [ 5 ]
to prevent evasion of the trade execution requirement through slight modification of a swap ' s terms , some commenters recommended that the commission should rely on its anti - evasion authority under section 6 ( e ) of the cea . [ 123 ]
287 . similarly , where a swap first becomes subject to the clearing requirement before being made available to trade , the clearing determination would alert market participants to the fact that specific classes of swaps may become subject to the trade execution requirement .
could mandatory electronic execution of over - the - counter ( otc ) derivatives , stemming from the 2009 g20 pittsburgh summit , act as the catalyst in spawning new business models ? jim myers , kimon mikroulis and paul gibson discuss the impact of mandatory electronic execution for certain otc products under the most advanced of these electronic mandates , dodd - frankís swap execution facilities ( sef ) . as the otc markets are entering a phase of rapid evolution , concepts that were originally created in the exchange - traded world , such as sponsored access , agency execution and general price aggregation , are emerging as critical issues to be addressed by otc market participants .
©2017 marketaxess holdings inc . ( the “company” ) . marketaxess , trade on and the marketaxess logo are trademarks of the company . marketaxess corporation , member of finra and sipc . marketaxess sef corporation is temporarily registered as a swap execution facility with the cftc . marketaxess europe limited and xtrakter limited are each authorised and regulated by the uk financial conduct authority . trax is a trading name of xtrakter limited , and the trax logo is a trademark of xtrakter limited .
several commenters proposed that the commission , not sefs and dcms , should maintain the exclusive authority to determine whether a swap is available to trade . [ 249 ] commenters expressed concern that illiquid swaps would become subject to the trade execution requirement if sefs and dcms were allowed to make the determination based on their incentives to maximize the number of swaps traded on a facility or platform . [ 250 ] cme stated a commission - based review of whether a swap is available to trade would lead to a more “logical and efficient” use of commission and industry resources . [ 251 ]
159 . see swap transaction compliance and implementation schedule : clearing and trade execution requirements under section 2 ( h ) of the cea , 76 fr 58186 ( sep . 20 , 2011 ) . in this final rule , the commission is finalizing the compliance and implementation schedule for the trade execution requirement , and therefore , addresses the relevant comments submitted in response to this proposed rule .
washington , dc – the commodity futures trading commission ( cftc or commission ) is requesting public comment on a certification from javelin sef , llc ( javelin ) to implement available - to - trade determinations for certain interest rate swap contracts . javelin submitted its available - to - trade determinations to the commission on a self - certified basis pursuant to commission regulations 37 . 10 and 40 . 6 . if javelin’s submission is deemed certified by operation of commission regulation 40 . 6 , such swap contracts , whether listed or offered by javelin or any other designated contract market ( dcm ) or swap execution facility ( sef ) , will be subject to the trade execution requirement under section 2 ( h ) ( 8 ) of the commodity exchange act ( cea ) . all transactions involving swaps that are subject to the trade execution requirement generally must be executed on either a dcm or a sef . in addition , to the extent that such transactions are executed on a sef , they must be executed in accordance with the execution methods prescribed by commission regulation 37 . 9 ( a ) ( 2 ) .
prohibits the use of taxpayer funds or resources : ( 1 ) to prevent the receivership of any swap entity resulting from its swap or security - based swap activity ; or ( 2 ) for the orderly liquidation of any swaps entities that are non - fdic insured , non - systemically significant institutions not subject to heightened prudential supervision .
the fnprm requested comment on whether the commission should allow a sef or dcm , in evaluating the factors under proposed §§ 37 . 10 ( b ) and 38 . 12 ( b ) , to consider ( 1 ) the same swap or an economically equivalent swap on another sef or dcm ; and ( 2 ) the amount of activity in the same swap or an economically equivalent swap available primarily or solely in bilateral transactions . [ 81 ]
makes liable for certain double civil money penalties any dco , swap dealer , or major swap participant that knowingly or recklessly evades , or participates in or facilitates an evasion of , specified requirements for certain transactions in exempt commodities .
authorizes the cftc , the sec , and the prudential regulators to agree to information - sharing arrangements necessary or appropriate in the public interest or for the protection of investors , swap counterparties , and security - based swap counterparties .
authorizes such a counterparty to any security - based swap that is not subject to the mandatory clearing requirement to elect to require clearing of the swap . grants such a counterparty also the sole right to select the clearing agency .
i have deep reservations about the process that the commission is proposing for “making a swap available to trade . ”
by michael beth , vice president , equity & derivative trading , wallachbeth capital . regulatory changes have created the need for increased execution transparency .
the retail platform is a go - to source for advisors and traders who need fast , reliable execution for their fixed income trading needs .
205 . sefs are a new type of regulated marketplace modeled largely on the existing commission - regulated dcm structure . section 1a ( 50 ) of the cea , as enacted by section 721 of the dodd - frank act , defines a sef as “a trading system or platform in which multiple participants have the ability to execute or trade swaps by accepting bids and offers made by multiple participants in the facility or system , through any means of interstate commerce , including any trading facility , that ( a ) facilitates the execution of swaps between persons ; and ( b ) is not a designated contract market . ” 7 u . s . c . 1 a ( 50 ) . section 5h ( a ) ( 1 ) of the cea , as amended by the section 733 of the dodd - frank act , prohibits any person from operating a facility for the trading and processing of swaps unless the facility is registered as a sef or a dcm . 7 u . s . c . 7 b - 3 ( a ) ( 1 ) .
part two looks at the changes to the overall market structure brought about by new regulation . though the swap execution facility is a new entity as defined by dodd - frank , an ecosystem of platforms and processes for the trading otc derivatives has been in place for decades . the introduction of new requirements for quoting , clearing and data transmission significantly altered the competitive landscape among inter - dealer brokerage firms ( idbs ) and dealer - to - client platforms . click to view part ii
( sec . 734 ) amends the cea to repeal requirements for derivatives transaction execution facilities and an election for registration by exempt boards of trade .
mfa commented that allowing mandatory trade execution to become effective simultaneously with mandatory clearing would potentially dilute market participants ' resources to comply with both requirements .
‘permitted transactions’ ( see below ) may trade via any means of execution as long as the sef offers an order book as a minimum functionality .
washington , d . c . , feb . 2 , 2011 — the securities and exchange commission today voted unanimously to propose rules defining security - based swap execution facilities ( sefs ) and establishing their registration requirements , as well as their duties and core principles .
some commenters stated that the commission should allow sefs and dcms to submit determinations for a group , category , type , or class of swap . [ 72 ] in defining “group , category , type , or class” of swap , aima stated that the commission should take into account specific characteristics of certain swaps to avoid subjecting certain illiquid swaps to mandatory trade execution . [ 73 ]
( sec . 714 ) authorizes the cftc and the sec to collect information concerning the markets for any types of swap or security - based swap and report on those detrimental to the stability of a financial market or of its participants .
requires recovery of all funds expended on the termination or transfer of the swap or security - based swap activity of a swaps entity from the disposition of the entity ' s assets or through assessments , including assessments on the financial sector .
deems a swap cleared by or through a dco to be a commodity contract with regard to all money , securities , and property of any swaps customer received by a futures commission merchant or a dco to margin , guarantee , or secure the swap ( including money , securities , or property accruing to the customer as the result of the swap ) .
a gypsy swap allows a company to raise capital without issuing debt or holding a secondary offering . read answer > >
cftc swap - trading rules may limit market entrants , moody’s says . bloomberg . retrieved on february 3 , 2011 .
acquiring market share in the trading of a particular swap before other venues can list and develop trading activity in that swap ) , which would lead to premature or ill - advised mandatory trading of illiquid swaps on a sef or dcm .
many entities may apply to become a swap execution facility . to qualify , they must meet specific thresholds as defined by the sec , cftc , and the dodd - frank act . applicants must register with the sec and meet specific requirements . requirements include the platform ' s ability to display all available bids and offers , send trade acknowledgments to all involved parties , maintain a record of transactions , and provide a request for quote system . further , they must meet certain margin and capital guidelines and the ability to segregate the swap exchange . finally , the applicant must agree to abide by the 14 sec core principles .
in this regard , some commenters stated that under section 2 ( h ) ( 8 ) ( b ) of the cea , swaps subject to the clearing requirement are automatically subject to mandatory trade execution unless a sef or dcm does not list the swap for trading .
20 . some commenters cited the july 2010 senate floor remarks of u . s . senator blanche lincoln , in which she stated that determining whether a swap is available to trade should consist of more than conducting a listing inquiry . according to senator lincoln , “ [ t ] he [ commission ] could consider , for example , whether there is a minimum amount of liquidity such that the swap can actually be traded on the facility . the mere ` listing ' of the swap by a [ sef ] , in and of itself . . . should not be sufficient to trigger the trade execution requirement . ” markit comment letter at 2 n . 6 ; chatham comment letter at 2 - 3 ; ici comment letter at 3 - 4 .
in november 2014 , the cftc updated its compliance dates for a number of package transactions . at issue are three requirements related to the execution rules :
those swaps that are made available to trade and thus subject to the trade execution requirement will be publicly posted on the commission ' s web site .
215 . the commission may determine that swap transactions exempted from the section 2 ( h ) ( 1 ) clearing requirement pursuant to other statutory authority would also not be subject to the section 2 ( h ) ( 8 ) trade execution requirement . see supra note 1 .
240 . the commission believes that market participants can use any or each of the factors to demonstrate that active trading is occurring for a particular swap . for example , a high frequency of transactions , narrow bid / ask spread , or large trading volume would indicate execution of transactions for that swap . a large number of buyers or sellers , or a large number of resting firm or indicative bids and offers would also indicate an active market based on the presence of market participants seeking to execute transactions in that swap .
some opposing commenters stated that the commission , not sefs and dcms , should determine whether a swap is available to trade .
assessing whether a swap is available to trade and submitting a determination pursuant to part 40 of the commission ' s regulations .
any many - to - many platform allowing for trading in swap indices must be registered as a sef by this date .
permitted transactions are not subject to the trade execution mandate under dodd frank though they may be executed on a sef or dcm , if the market participant chooses . these transactions are illiquid or bespoke in nature . permitted transactions may trade via any method of execution as long as the sef offers an order book .
prescribes clearing requirements for swaps . makes it unlawful for any person to engage in a swap without submitting it for clearing to a dco that is either registered under this act or exempt from such registration , if the swap is required to be cleared .
in this release , the commission is adopting final rules ( 1 ) specifying the process by which a swap is made “available to trade , ” thereby making it subject to the trade execution requirement under section 2 ( h ) ( 8 ) of the cea ( “available - to - trade rule” ) ; and ( 2 ) establishing the compliance schedule of the trade execution requirement , following a commission determination that a swap is both required to be cleared and is available to trade ( “trade execution compliance schedule” ) . [ 211 ] more specifically , these rules allow sefs and dcms to designate swaps that they list or offer for trading as “available to trade , ” [ 212 ] thereby requiring market participants who transact such swaps ( and who are subject to the clearing requirement under section 2 ( h ) ( 1 ) ( a ) of the cea ) to comply with the trade execution requirement in carrying out these transactions . swaps that are subject to the trade execution requirement ( and are not block trades as defined under § 43 . 2 of the commission ' s regulations ) must be executed in accordance with other separately promulgated rules that implement the dodd - frank act ' s swap exchange trading requirements and are intended to provide improved price transparency for swap transactions . [ 213 ]
( sec . 773 ) subjects a clearing agency and security - based swap dealer or major security - based swap participant to a civil money penalty in twice the amount otherwise available for knowing or reckless evasion , participation in , or facilitation of specified violations .
the commission , however , is not adopting a minimum listing period so as to avoid delaying the determination process , and hence implementation of the trade execution requirement as discussed below . the commission also notes , as discussed further below , that a sef or dcm is allowed to consider activity in the same swap listed on another sef or dcm as well as the amount of off - exchange activity in the same swap .
the implementation period reflected in the final rule should ensure that market participants have adequate time to comply with the trade execution requirement and will be prepared to transact swaps on a sef or dcm . as a result , market participants should be able to maintain hedges that have been executed through swap transactions , thereby mitigating market and counterparty risks . moreover , a compliance schedule that facilitates sef and dcm swap execution by the greatest number of potential market participants , as does the final rule , indirectly promotes market liquidity , thereby reducing the overall costs of utilizing swaps for risk management purposes .