Key takeaways:

• Last Friday, the CFTC finally issued its proposed guidance on the cross-border application of the swap provisions of the Commodity Exchange Act that were enacted by Title VII of the Dodd-Frank Act.
• The proposed guidance sets forth the general manner in which the CFTC will interpret the definition of “swap dealer” and “major swap participant” in connection with non-US persons and their overseas activities. Further, the proposed guidance also addresses the application of clearing, trade execution, reporting and recordkeeping requirements and other substantive swap regulations to non-US swap dealers and major swap participants, with respect to their overseas activities.
• Last, the CFTC proposes to permit non-US swap dealers and major swap participants to be subject to the substituted compliance of their home jurisdictions in certain situations, and the proposed guidance outlines the procedure to submit a request for substituted compliance.