External Meetings: Meeting with Mizuho

In a conference call with CFTC staff, MSUSA employees and consultants raised questions relating to the definition of swap dealer and the registration and regulation of swap dealers; in particular, the applicable requirements for foreign entities and their U.S.-based affiliates transacting with U.S. counterparties. CFTC staff advised that the CFTC's proposed registration requirement applies to any entity that is a swap dealer, as that term is defined in the Dodd-Frank Act and in any final rulemaking adopted by the Commission to further define the term. CFTC staff noted that it might be possible for the swap dealer to outsource the performance of some administrative and other functions to another entity without requiring the other entity to register as a swap dealer.  The external participants also opined to CFTC staff that if the foreign entity is required to register with the CFTC as a swap dealer, CFTC transaction and other compliance requirements should apply with respect to the transactions of the foreign swap dealer with its U.S. counterparties, but not its non-U.S. counterparties.