Navigating Key Dodd-Frank Rules Related to the Use of Swaps by End Users

Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) enacted a new regime of substantive regulation of over-the-counter (“OTC”) derivatives under U.S. securities and commodities laws. Over the course of 2013, many key provisions of Dodd-Frank are being implemented by the Commodity Futures Trading Commission with respect to “swaps.” Most of the regime’s requirements focus on “swap dealers” and “major swap participants.” However, commercial entities that enter into OTC derivatives transactions to hedge or mitigate risk, referred to as “end users,” will also become subject to a wide range of substantive requirements. The attached memorandum describes these substantive requirements.