2025-23953RuleSignificant

CFTC Simplifies Swap Dealer Business Conduct and Documentation Rules

Published Date: 12/30/2025

Rule

Summary

Starting January 29, 2026, swap dealers and major swap participants will follow new, clearer rules for how they handle business conduct and swap paperwork. These changes make it easier to comply when swaps are cleared right away or involve special prime broker setups. The update replaces old informal guidance, aiming to simplify processes and keep things running smoothly without extra costs.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Exceptions for Swaps Intended To Be Cleared

Starting January 29, 2026, swap dealers and major swap participants (``Swap Entities'') may follow exceptions to certain external business conduct and swap trading documentation rules when the parties intend the swap to be cleared contemporaneously with execution (so-called Intended To Be Cleared or ITBC Swaps). That means Swap Entities executing ITBC Swaps will be able to rely on the Final Rule's exceptions instead of following some pre-trade disclosure and onboarding documentation requirements in subpart H and Sec. 23.504.

Exceptions for Prime Broker Swap Arrangements

Beginning January 29, 2026, the Final Rule provides exceptions to certain business-conduct and disclosure requirements for swaps executed under qualifying prime broker (PB) arrangements. Swap dealers acting as prime brokers that meet the rule's qualifying conditions may not be required to perform some pre-trade disclosures or onboarding steps that were previously required under subpart H.

Codifies and Replaces Longstanding No-Action Letters

The Final Rule adopts amendments that supersede certain Market Participants Division (MPD) no-action letters (the Covered Staff Letters listed in the Final Rule) and the Commission expects MPD to terminate those no-action positions in due course. The rule therefore codifies outcomes similar to those MPD no-action positions into Commission regulations.

Exempt DCOs and SEFs Treated Like Registered Venues

The Final Rule treats swaps executed on Exempt SEFs and cleared on Exempt DCOs the same as swaps executed on registered SEFs/DCMs or cleared on registered DCOs for purposes of the ITBC exceptions. The Final Rule explicitly defines any DCO or SEF exempted under sections 5b or 5h(g) of the CEA as an Exempt DCO or Exempt SEF for this purpose.

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Key Dates

Published Date
Rule Effective
12/30/2025
1/29/2026

Department and Agencies

Department
Independent Agency
Agency
Commodity Futures Trading Commission
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