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.

This article focuses on the implementation of the new regulations for the swap markets, including registration, reporting, business conduct, and other requirements. It also discusses the cross-border implications for swap dealers and major swap participants. Diana is quoted as encouraging the CFTC to adhere to its pledge to work with market participants to ensure a smooth transition.

The article provides an overview of the role of clearing and the Dodd-Frank Act mandate to move most swaps to clearinghouses. It forecasted an exemption for banks with less than $10 billion in assets that use swaps to hedge and mitigate risk. Diana is quoted as advocating for a risk-based measurement because it will better reflect potential market risk.

Diana provided formal training for state bank supervisors about the Dodd-Frank Act mandated new regulatory framework for the swaps markets. The presentation included background information about regulations and pending federal and state legislation. She focused on the measurement of credit exposure now included in lending limits for both national and state-chartered banks, single counterparty credit limits, margin requirements, affiliate transactions, and more.

In the full committee meeting of the Business Law Section Banking Law Committee (BLC), Diana gave a presentation about the new regulatory framework for the swaps markets mandated by the Dodd-Frank Act. She provided an overview of dozens of pending rules and related pending legislation. Her focus was on clearing and margin requirements, registration and regulation of market participants, transaction reporting, push-out of certain derivatives from the most active banks, and international implications.