Introduction
The Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) is a USA federal regulation enacted as a response to the financial crisis of 2007–2008 (but some of its provisions were abolished in 2018).
The main goal of DFA is to enforce stricter regulatory control in the US derivatives market, hence the regulation applies whenever there is involvement of a U.S. person, as defined by the U.S. Commodity Futures Trading Commission (CFTC): this means both trading activity between U.S. persons and trading activity of a non-U.S. person with a U.S. person.
Other goals of DFA are to increase transparency in the derivatives market, strengthen investor protection, and reduce risk in the financial system, thus protecting investors as well as taxpayers.
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