Rimon’s John Isaza in the Wall Street Journal on New Requirements for Companies Engaging in Swaps
Rimon PC partner John Isaza alerted businesses of the brewing dangers for a host of unsuspecting industries in the Dodd-Frank Law. Mr. Isaza was quoted in the Wall Street Journal’s CIO Journal noting that companies engaged in swaps might have to record every phone call, instant message and voicemail relevant to the deals. As Mr. Isaza noted, this rule could have broad implications for businesses outside of the financial sector, catching market sectors focused on energy, food, manfacturing and insurance.
Mr. Isaza, a pioneering data management and record keeping attorney, noted that the rules will “alter the paradigm” of how electronic information is stored and maintained at companies deemed to fall under the rule, he said.
“You’re going to have the creation of whole markets, to facilitate the retention of this information,” said Mr. Isaza. “It’s going to be very difficult to keep up with these records.”
The U.S. Commodity Futures Trading Commission, which wrote the rules, has not yet issued guidance on how broadly they will define, “major swap participant,” but the agency says the rules will take effect June 4th.
Read more here in the Wall Street Journal.