Regulatory Alerts2024-07-18 | 2024-15095Order Granting Conditional Substituted Compliance for EU Nonbank Swap Dealer Capital and Financial Reporting Requirements
The Commodity Futures Trading Commission (CFTC) issued an order granting conditional substituted compliance, allowing registered nonbank swap dealers domiciled in France and Germany to satisfy U.S. capital and financial reporting rules by complying with corresponding European Union regulations. The determination requires these entities to submit monthly and annual financial reports to the Commission, promptly notify the CFTC of adverse events or material changes to home country frameworks, and maintain active National Futures Association membership. While granting this regulatory equivalence, the order explicitly preserves the CFTC’s ongoing supervisory, examination, and enforcement authority, permitting direct CFTC action if dealers fail to meet their home country capital standards.