The CFTC issued its first rule specifying the types of swaps required to be cleared by a registered DCO. Under Dodd-Frank, the CFTC is required to determine which swaps must be cleared. The rule represents the first exercise by the CFTC of that authority and applies only to certain credit default swaps (CDS) and interest rate swaps cleared by CME, ICE Clear Credit, ICE Clear Europe and LCH.Clearnet Ltd. Under the rule, market participants will be required to submit a swap that is identified in the rule for clearing by a DCO as soon as technologically practicable and no later than the end of

In response to legislation introduced by Representative Tom Price (R-GA) that would make clear that foreign governments have no authority to tax securities transactions that are between U.S. persons and that occur within the United States, SIFMA released the attached statement of support. Lofchie Comment: What I find interesting about this is not the tax issue per se, but rather the general question of extra-territorial authority. For example, the EU has recently issued regulations that purport to prevent U.S. persons acting within the United States from entering into short-sale transactions

Mexico became the third country to sign a FATCA intergovernmental agreement (“IGA”) with the United States on November 19. The Mexican IGA is a reciprocal agreement based on the Model I government-to-government approach under which financial institutions in Mexico will report information required by FATCA to the Mexican government which will automatically forward such information to the U.S. IRS. Annex II to the IGA excludes from FATCA reporting Mexican governmental organizations and insurance institutions for pension and survival as defined in Article 159, fraction IV of the Mexican Social

Financial Services Committee Chairman Spencer Bachus announced the committee’s hearing schedule for the first two weeks of December. Each meeting (the first as to derivatives and the second as to Volcker) will become final only when the official notice is distributed. Additional information about each hearing, as well as a list of witnesses, to come. Click here for more information.

The MSRB is updating dealers on the status of a new requirement for brokers, dealers and municipal securities dealers (collectively “dealers”) to report for inter-dealer transactions the contractual dollar price at which the transaction was executed. The MSRB will announce the new implementation date in a notice published on the MSRB website at least 10 business days in advance of the new implementation date, which shall be no later than March 29, 2013. View Notice in full here (links externally to MSRB website).