CFTC Approves Final Rule to Revise Swap Dealer Business Conduct and Swap Documentation Requirements
Executive Summary
The CFTC approved a final rule on December 18, 2025, that codifies existing staff no-action positions and eliminates duplicative business conduct and documentation requirements for swap dealers and major swap participants. This rule resolves over a decade of regulatory uncertainty, reduces operational costs, and harmonizes CFTC requirements with SEC and Municipal Securities Rulemaking Board standards.
What Changed
The final rule introduces the following substantive amendments: Exceptions for Swaps Intended to be Cleared (ITBC Swaps) Swap dealers and major swap participants are exempted from certain External Business Conduct Standards and swap trading relationship documentation requirements when executing swaps that are intended by the parties to be cleared contemporaneously with execution. Such swaps are deemed void if rejected from clearing. Prime Broker Arrangement Exemptions Swaps executed pursuant to prime broker arrangements meeting specified qualifying conditions receive exemptions from certain business conduct and documentation requirements, including the pre-trade price disclosure requirement. Elimination of Pre-Trade Mid-Market Mark (PTMMM) Requirement The rule eliminates the requirement
What You Need To Do
- *Immediate Actions (Pre-Implementation)
- *Implementation Actions (Upon Effective Date)
- trade disclosure systems to remove PTMMM generation and delivery requirements
- based operations, review implications of superseded Staff Letter No
- *Ongoing Compliance
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
No description available.