FINRA announced that it is filing with the SEC a proposed rule change to exclude additional short-term discount notes from the definition of TRACE-Eligible Security in FINRA Rule 6710(a) by amending the definition of "Money Market Instrument" in FINRA Rule 6710(o) of the Trade Reporting and Compliance Engine (TRACE) rules. The result of this change is that such notes would not be subject to TRACE reporting. View text of proposed rule change here(links externally to FINRA website).

Republican Representatives Scott Garrett of New Jersey, Spencer Bachus of Alabama, and Jeb Hensarling and Randy Neugebauer, both of Texas, submitted a letter to the CFTC in which they sought an accounting of the costs of the position limits rule. According to the letter, speculation limits for oil, natural gas and other commodities reflect wasteful spending by the CFTC. The representatives asked the CFTC to provide information as to the time spent on the position limits rule and the total amount it cost to complete the rule and defend it in court. The letter notes that the CFTC is requesting a

The CFTC has issued the attached interpretative guidance letter to asset-backed securities funds. The guidance states that securitization funds which meet certain criteria are not included within the definition of "commodity pool" and their operators are not "commodity pool operators" under the Commodity Exchange Act and the CFTC's regulations. The relevant criteria include: The issuer of the asset-backed securities is operated consistently time with the conditions set forth in Regulation AB, or Rule 3a-7, whether or not the issuer's security offerings are in fact regulated pursuant to either

The CFTC has issued this FAQ document to respond to questions from market participants and other interested parties on the reporting of cleared swaps as required under CFTC Rules Part 45 ("Swap Data Recordkeeping and Reporting Requirements"). This document is intended to help market participants better understand how to report cleared swaps, who has the obligation to report and the timing of reporting. Cross-Reference(s): Dodd-Frank Section 728 (Swap data repositories). View FAQ here(links externally to CFTC website). See also: Yesterday's news link to an FAQ on the start of swap data

The CFTC issued temporary no-action relief until November 8, 2012 with respect to the new statutory requirement imposed by the Dodd-Frank Act for the segregation of cleared swaps collateral held at a DCO. Dodd-Frank amended the CEA to require the segregation of customer collateral used to margin cleared swaps. In addition, an FCM and a DCO that receives Customer Swaps Collateral with respect to cleared swap positions must treat such Customer Swaps Collateral as belonging to the relevant customer and cannot use that Customer Swaps Collateral to margin or secure its own swap positions or any