The Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Commodity Exchange Act (the “CEA”) to establish a comprehensive new regulatory framework for swaps. Part 45 of the CFTC regulations provides that each counterparty to any swap subject to the CFTC’s jurisdiction must be identified in all recordkeeping and all swap data reporting by a single legal entity identifier (an “LEI”, currently known as a CFTC Interim Compliant Identifier or “CICI”).
Private funds and other entities that are not swap dealers or major swap participants1 must obtain a CICI no later than April 10, 2013 if they are entering into any new swaps subject to CFTC jurisdiction. The CICI can be obtained by going to the following link, https://www.gmeiutility.org/
Third-parties are able to obtain a CICI for entities. If a third-party has obtained a CICI for a private fund, the manager should certify the CICI.
Even if a private fund or other entity that is not a swap dealer or major swap participant is not required to obtain the CICI on April 10, 2013, it will be required to obtain a CICI prior to October 7, 2013 if it is a counterparty without a reporting obligation for any so-called “historical swaps”-i.e., swaps subject to CFTC jurisdiction in existence on or after April 25, 2011.2
If you have any questions concerning the foregoing, please contact your primary attorney in Seward & Kissel’s Investment Management Group.
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1 Part 45 established earlier compliance dates for swap dealers and major swap participants: (1) October 12, 2012 for swap dealers and major swap participants engaging in credit and interest rate swaps; and (2) January 10, 2013 for swap dealers and major swap participants with respect to equity, foreign exchange, and other commodity swaps.
2 The reporting counterparty for each historical swap in existence on or after April 25, 2011 must obtain and report a CICI no later than the compliance date applicable to it (i.e. (1) October 12, 2012 for swap dealers and major swap participants engaging in credit and interest rate swaps; (2) January 10, 2013 for swap dealers and major swap participants with respect to equity, foreign exchange, and other commodity swaps; and (3) April 10, 2013 for entities that are not swap dealers or major swap participants with respect to all swaps under the CFTC’s jurisdiction). The non-reporting counterparty for each historical swap in existence on or after April 25, 2011 must obtain and report a CICI no later than 180 days after the compliance date applicable to it.
