The Commodity Futures Trading Commission (“CFTC”) recently approved a final rule broadening the scope of the CFTC’s financial privacy regulations under the Gramm-Leach-Bliley Act (“GLBA”) to include “swap dealers” and “major swap participants,” two types of entities created by and subject to regulation under Dodd-Frank.  GLBA requires financial institutions to, among other requirements, establish safeguards to ensure the security and confidentiality of consumer records and to comply with certain requirements governing the disclosure of consumers’ personal information.  Swap dealers and major swap participants are expected to collect and use nonpublic personal information in a similar manner as financial institutions currently subject to GLBA’s financial privacy requirements.  The CFTC’s rule simply extends the financial privacy requirements to swap dealers and major swap participants.

The final rule becomes effective 60 days after the CFTC finalizes its regulations further defining the terms “swap dealer” and “major swap participant.”  On December 21, 2010, the CFTC issued proposed regulations with respect to these definitions.  The proposed definitions of these terms under the Dodd-Frank statute appear after the jump.Continue Reading CFTC Issues Final Rule Extending Financial Privacy Requirements to Swap Dealers and Major Swap Participants