"Positive 'Externalities': CFTC Delays External Business Conduct Rules"

On August 27, 2012, the Commodity Futures Trading Commission (the "CFTC") announced it was deferring the effective date of certain approved final rules (the "Final CFTC Rules") under new Section 4s(h) of the Commodity Exchange Act, which relate to business conduct standards with respect to over-the-counter swaps for swap dealers and major swap participants generally, and also specifically in connection with so-called "Special Entities" such as employee benefit plans subject to the Employee Retirement Income Security Act of 1974, as amended, and governmental plans and other entities.   The new effective date for these specific Final CFTC Rules will now be in 2013.

This Stroock Special Bulletin highlights the CFTC's decision and provides some context for consideration and for next steps.