NO 235 – SEPTEMBER 2012
52nd WFE Annual Meeting

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WFE Focus September 2012
Regulation

CFTC issues final rules for swap trading

On 27 August 2012, the Commodity Futures Trading Commission approved final rules to improve the risk management procedures of swap dealers and major swap participants. The Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Commission to adopt rules on the timely and accurate confirmation, processing, netting, documentation, and valuation of all swaps, as well as the reconciliation and compression of swap portfolios. Proper documentation of swaps is critical to reducing risk in the bilaterally-traded swaps market and has been the focus of significant domestic and international attention in recent years. Confirmation, portfolio reconciliation, and portfolio compression have been recognized as essential post-trade processing mechanisms for reducing risk and improving operational efficiency. These rules also will help highlight risk management concerns for swap dealer and major swap participant, senior management and regulators at an earlier stage.

DTCC launches CFTC interim compliant identifier utility

The Depository Trust & Clearing Corporation and SWIFT have launched a web portal to begin assigning CFTC Interim Compliant Identifiers (CICIs). CICIs are interim legal entity identifiers, which will be used by registered entities and swap counterparties in complying with the CFTC’s swap data reporting regulations. On July 24, 2012, the Commission designated DTCC-SWIFT as the provider of CICIs.

Singapore Exchange introduces new rules allowing direct market access

On 18 September 2012, the Singapore Exchange introduced rule changes allowing market participants to access SGX-ST’s trading system directly using systems of their own or of SGX-ST members. With direct market access, market participants are able to transmit orders to SGX-ST’s trading engine in real time. In addition, SGX also introduced new rules on the participation criteria and compliance requirements for SGX-ST members in relation to the ASEAN Trading Link.

Stock Exchange of Thailand amends listing rules for holding company

The Stock Exchange of Thailand has amended its listing rules to facilitate holding company whose main business is abroad to list on SET. The amendment includes reducing the minimum stake holding that a holding company must invest in its main business in order to facilitate joint ventures with foreign firms.