CFTC's Proposed Business Conduct Standards for Swap Dealers: Costs and Consequences to Swap Dealers and Plans 2011 (Audio-only)

Taken from the briefing CFTC's Proposed Business Conduct Standards for Swap Dealers: Costs and Consequences to Swap Dealers and Plans recorded January, 2011.

The Commodity Futures Trading Commission has proposed business conduct regulations for swap dealers to implement provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  

The proposed regulation will significantly change the swaps market for plans.  Swap dealers will be required to provide extensive information (including daily marks) to plan counterparties and to make recommendations that are “suitable” or in the “best interest” of a plan counterparty based on the swap dealer’s analysis and assessment of factors such as the plan’s financial situation and needs, its ability to evaluate the recommendation, and the expertise of its independent fiduciary.  By imposing such requirements on swap dealers, the proposed regulation raises serious issues under the Department of Labor’s proposed regulations defining the term “fiduciary”.

Melanie Franco Nussdorf of Steptoe & Johnson LLP and A. Richard Susko of Cleary Gottlieb Steen & Hamilton LLP will discuss the extent of these changes, their interaction with ERISA, and the potential consequences for swap dealers and plans.

Lecture Topics  [Total Time: 01:03:48]

• The key requirements of the proposed regulation 
• The additional costs and consequences of the new requirements 
• The key risks to swap dealers and plans

Presentation Material
 

• CFTC's Proposed Business Conduct Standards for Swap Dealers: Costs and Consequences to Swap Dealers and Plans - Alert Memo
• CFTC's Proposed Business Conduct Standards for Swap Dealers: Costs and Consequences to Swap Dealers and Plans
  A. Richard Susko