On April 30, 2013, the Commodity Futures Trading Commission staff issued a letter granting temporary relief to swap dealers from compliance with certain “external business conduct standards” related to foreign exchange and swap prime brokerage arrangements. This relief is not expected to impose any new obligations on investment advisers. However, it forestalls a potential market disruption by providing swap dealers the ability to resolve certain issues in applying the external business conduct standards to current foreign exchange and swap prime brokerage arrangements. Private fund managers and other investment advisers that engage in such prime brokerage arrangements should expect notices from their prime brokers indicating their compliance with this CFTC staff letter.
Click here to read more about the temporary relief.