CFTC Issues Guidance on Block Trade and Large Notional Off-Facility Swap Rules; Advisers Must Obtain Consents

September 10, 2013

The U.S. Commodity Futures Trading Commission (“CFTC”) has issued final rules (“Final Rules”) setting minimum block trade sizes for different types of CFTC-regulated swaps that are permitted to be executed off-facility and with a time delay in public reporting. These rules are an exception to CFTC regulations requiring real-time reporting of swap transaction and pricing data. This Dechert OnPoint describes how investment advisers (“Advisers”) may engage in these types of excepted trades, including when client consent is necessary, when aggregating orders across multiple clients to reach the minimum block trade sizes is permitted and the steps Advisers may need to take to obtain client consent to aggregate orders.

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