Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080

Commodity Futures Trading Commission

Office of Public Affairs

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

www.cftc.gov

Q & A – Proposed Order to Amend Effective Date for Swap Regulation

What is the purpose of the proposal?

The purpose of the proposed Order is to extend the temporary exemptive relief the Commission provided in a final order 

issued on July 14, 2011 (the “July 14 Order”), from certain provisions of the Commodity Exchange Act (“CEA”) that 

otherwise would have taken effect on July 16, 2011 – the general effective date of title VII of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (“the Dodd-Frank Act”).

How would the proposal modify the existing exemptive relief provided in the July 14 Order?

The July 14 Order grants temporary relief in two parts. The first part addresses those CEA provisions added or amended by 

title VII of the Dodd-Frank Act that reference one or more terms regarding entities or instruments that title VII requires be 

“further defined,” to the extent that the requirements or portions of such provisions specifically relate to such referenced 

terms and do not require a rulemaking. With respect to provisions covered in the first part of the relief in the July 14 Order, 

the Commission is proposing to amend this temporary exemptive relief to expire upon the earlier of: (1) the effective date of 

the applicable final rule further defining the relevant referenced term; or (2) July 16, 2012. This amendment addresses the 

potential that, as of December 31, 2011, the CFTC-SEC joint rulemakings “further defining” the referenced terms will not yet 

be effective. 

The second part of the temporary relief provided in the July 14 Order, which is based on part 35 of the Commission’s 

regulations, addresses certain provisions of the CEA that may apply to certain agreements, contracts, and transactions in 

exempt or excluded commodities as a result of the repeal of various CEA exemptions and exclusions as of the general 

effective date of July 16, 2011. The Commission also is proposing to amend the July 14 Order to extend the expiry date of the 

second part of the temporary exemptive relief in the July 14 Order until the earlier of: (1) July 16, 2012; or (2) such other

compliance date as may be determined by the Commission. 

As with the July 14 Order, these proposed amendments are intended to continue the ongoing and orderly transition to the 

new swap regulatory regime.

Would the proposed Order change the nature or scope of the existing relief provided in the July 

14 Order?

No, the proposed amendments would maintain the status quo with regard to the nature and scope of the currently outstanding 

temporary exemptive relief. However, the proposed amendments also would include transactions that fully meet the 

conditions in the existing part 35 of the Commission’s regulations to account for the fact that, in its recent final rulemaking 

addressing swaps in agricultural commodities, the Commission repealed and replaced part 35 effective on December 31, 2011. 

The Commission proposes that this further amendment to the July 14 Order is necessary to ensure that the same scope of the 

exemptive relief available before December 31, 2011 is available to all swaps and extends through July 16, 2012, at the latest.

Does the proposed Order re-open the entire July 14 Order for comment?

No, the Commission will only consider comments related to the proposed amendments.