Commodity Futures Trading Commission 

 Office of Public Affairs 

 Three Lafayette Centre 

 1155 21st Street, NW 

 Washington, DC 20581 

 www.cftc.gov

Proposed Rulemaking on Amendments to Adapt 

Certain CFTC Regulations to the Dodd-Frank Act 

The Commodity Futures Trading Commission (“Commission”) is proposing amendments to certain of its 

regulations in Parts 1, 5, 7, 8, 15, 18, 21, 36, 41, 140, 145, 155, and 166 in order to implement aspects of the DoddFrank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”).

Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) 

Section 721 of the Dodd-Frank Act amended the definitions of futures commission merchant and introducing broker in 

section 1a of the Commodity Exchange Act to permit these intermediaries to trade swaps on behalf of customers. 

Section 733 of the Dodd-Frank Act amended section 5 of the Commodity Exchange Act by introducing swap 

execution facilities as trading platforms for swaps. In this proposed rulemaking, the Commission revised several of its 

regulations to reflect these and other revisions to the Commodity Exchange Act. 

Revising Recordkeeping Rules 

Pursuant to proposed revisions to Regulations 1.31, 1.33, and 1.35, futures commission merchants and introducing 

brokers must maintain records for swap transactions that are analogous to those records they presently must 

maintain for futures transactions. In drafting these amendments, staff took into consideration recordkeeping rules 

the Commission recently proposed for swap dealers and major swap participants (Reporting, Recordkeeping, and Daily 

Trading Records Requirements for Swap Dealers and Major Swap Participants, 75 F.R. 76666 (December 9, 2010) (“Swap 

Dealer and Major Swap Participant Recordkeeping Proposed Rule”)). For example, the Commission proposes to 

require futures commission merchants and introducing brokers to maintain records of swap transactions until the 

termination, maturity, expiration, transfer, assignment, or novation date of the transaction plus five years. In the 

Swap Dealer and Major Swap Participant Recordkeeping Proposed Rule, the Commission proposed that swap 

dealers and major swap participants retain records of swap transactions for the same period of time. 

The Commission has proposed amending Regulation 1.35 by requiring members of swap execution facilities to 

comply with the same recordkeeping requirements currently applicable to members of designated contract markets. 

For example, under proposed revised Regulation 1.35(a), a swap execution facility member must keep “full, 

complete and systematic records, together with all pertinent data and memoranda, of all transactions related to its 

business of dealing in commodity interests.” 

The Commission also proposes to amend Regulation 1.35 by explicitly requiring futures commission merchants, 

introducing brokers, retail foreign exchange dealers, and members of designated contract markets and swap 

execution facilities to keep records of all oral communications that lead to the execution of transactions in a 

commodity interest or cash commodity. In the Swap Dealer and Major Swap Participant Recordkeeping Proposed 

Rule, the Commission proposed that swap dealers and major swap participants comply with the same requirement. 

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

Finally, under proposed amended Regulation 1.31, all records required to be kept by the Commodity Exchange Act 

and Commission regulations would have to be maintained in their original format (paper records) or in their “native 

file format” (electronic records).

Bunched Orders 

The Commission has proposed amending Regulation 1.35(a-1)(5) to provide procedures for end-of-day allocation 

of bunched orders for both cleared and uncleared products. In addition, under the proposed amendments, futures 

commission merchants and introducing brokers would be able to serve as eligible account managers for bunched orders 

provided that, consistent with Regulations 155.3 and 155.4, they do not bunch proprietary orders with customer 

orders. 

Adding Swaps, Swap Execution Facilities, and Swap Data Repositories to Various Regulations 

The Commission has proposed amending several regulations in Parts 1 and 140 to treat swaps analogously to 

futures and to treat swap execution facilities and swap data repositories analogously to designated contract markets. 

For example, pursuant to proposed revised Regulation 1.39, a member of a swap execution facility may 

simultaneously execute buying and selling orders of different principals for the same swap. Presently, Regulation 

1.39 permits a member of a designated contract market simultaneously to execute buying and selling orders of 

different principals for the same futures or option contract. Under proposed revised Regulation 140.72, swap 

execution facilities and swap data repositories are added to the list of organizations to which certain Commission 

staff may disclose certain confidential information. 

Amending Definitions 

The Commission has proposed amending the definitions of commodity interest, customer, customer funds, net deficit, net 

equity, and open contracts so that they pertain to swaps in addition to futures. Amending these definitions enables 

several of the Commission’s general regulations in Part 1 to apply to both futures and swaps.