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 Address Effective Date for Swap Regulation 

What is the purpose of the proposal? 

Title VII of the Dodd-Frank Act establishes a comprehensive new regulatory framework for swaps. Section 754 of 

the Dodd-Frank Act provides that certain provisions are self-effectuating on July 16, 2011 (the general effective 

date set forth in Title VII), while others become effective upon the adoption of an implementing regulation by the 

Commission. The Commission’s rulemakings to implement the Dodd-Frank Act will not be completed by July 16, 

2011. Accordingly, this proposed Order is necessary to facilitate an appropriate transition to the new swap 

regulatory regime. Such an orderly transition will promote market efficiency, and will provide clarity to participants 

in the swaps market that is in the interest of the markets and the public. 

What is covered by the proposed Order? 

The proposed Order would provide two types of temporary exemptive relief with respect to various requirements 

applicable to certain transactions: 

Part one of the proposed Order covers provisions of the Commodity Exchange Act (CEA) that would go into 

effect on July 16, but that reference terms such as “swap,” “swap dealer,” “major swap participant,” or “eligible 

contract participant” that the Dodd-Frank Act requires the CFTC and SEC to “further define.” These further 

definitional rulemakings will not be in place by July 16. Accordingly, the proposed Order would temporarily 

exempt persons or entities from complying with requirements in these provisions that are specifically related to 

these referenced terms until the effective date of the definitional rulemaking for such terms or December 31, 2011, 

whichever is earlier. 

Part two of the proposed Order covers provisions of the CEA that will apply to certain transactions (primarily in 

financial and energy commodities) as a result of the repeal of various exemptions and exclusions in the CEA as of 

July 16, 2011. The proposed Order would temporarily exempt such transactions from certain CEA provisions until 

the repeal or replacement of certain of the Commission’s regulations or December 31, 2011, whichever is earlier. 

Are there any limitations on the temporary exemptive relief? 

Yes. First, part one of the proposed Order provides relief from requirements only to the extent they specifically 

relate to entities or instruments such as swaps, swap dealers, major swap participants, or eligible contract 

participants. Neither part of the proposed Order would affect the Commission’s authority with respect to futures 

contracts, options on futures, or transactions by retail customers in foreign currency or other commodities. 

Further, the proposed Order would not apply to any provision of Title VII of the Dodd-Frank Act that has already 

become effective, nor would it affect any implementing regulations that the Commission has issued or may 

promulgate under the Dodd-Frank Act, including any implementation dates contained therein. 

Would the proposed Order limit the CFTC’s ability to pursue fraud and manipulation? 

No. 

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

Are there provisions in Title VII of the Dodd-Frank Act that are not covered by the proposed 

Order? 

Yes. Provisions of Title VII of the Dodd-Frank Act that require an implementing rulemaking will not become 

effective on July 16, and thus are not covered by the proposed Order. There also are some provisions that are selfeffectuating and will become effective on July 16, but that are not included within the proposed Order. Separate 

lists of the provisions in each of these two categories will be posted on the CFTC website at www.cftc.gov. 

Are commenters required to respond to all aspects of the proposed Order? 

No, commenters can comment on any or all of the questions posed in the proposed Order.