Monthly Archives: August 2012

Preston Law Logo Mark
Banking, Derivatives, Public Policy & Advocacy, Securities & Capital Markets

Petition for Rulemaking on the Definition of Eligible Contract Participant in Commodity Exchange Act Section 1a(18), Interpretive Letter, Exemptive Relief, or Other Guidance

August 24, 2012 | American Bankers Association (ABA)

The ABA seeks CFTC and SEC rulemaking, an interpretive letter, exemptive relief, or other guidance on the eligible contract participant (ECP) definition. As a result of Dodd-Frank Act rulemaking implementation effective October 12, 2012, only ECPs are able to enter into over-the-counter swaps. Banks need clarity on the ECP definition and it has a particular impact on small and medium-sized businesses. The CFTC issued a No-Action and Interpretation Letter on the implementation date.

Learn More
Preston Law Logo Mark
Banking, Derivatives, Public Policy & Advocacy

Comment Letter on Clearing Exemption for Certain Swaps Entered Into by Cooperatives

August 16, 2012 | American Bankers Association (ABA)

The ABA strenuously opposes the clearing exemption for certain swaps entered into by cooperatives. The CFTC has no policy justification for adopting the exemption, which grants financial institutions that are cooperatives a broader clearing exemption than banks. The exemption is arbitrary and capricious and creates competitive harm to banks while providing additional benefits to cooperatives, including a credit union with nearly $50 billion in assets and a Farm Credit bank with over $90 billion in assets.

Learn More