CFTC Proposed Rule: Additional Interest Rate Swaps For Clearing Requirement

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On June 9, 2016, The U.S. Commodity Futures Trading Commission (CFTC) proposed amending CFTC regulation 50.4(a) to require certain additional interest rate swaps to be cleared by market participants through a registered derivatives clearing organization (DCO) or a DCO that has been exempted from registration under the CEA (Exempt DCO). <ref>CFTC Proposes Additional Interest Rate Swaps For Clearing Requirement. CFTC. Retrieved on August 2, 2016.</ref> The proposed rule is mandated by the Dodd-Frank Act.

Clearing Requirement Determination for Interest Rate and Credit Default Swaps
Final Determination Effective Date Compliance Dates
December 13, 2012 February 11, 2013 Categories I,II,III phased in - March 11/June 10/Sep. 9, 2013

Summary of Proposed Rule[edit]

The scope of proposed expanded regulation 50.4(a) would make the CFTC’s clearing requirement consistent with those proposed or finalized in 2015 or 2016 by the CFTC’s counterparts in Australia, Canada, the European Union, Hong Kong, Mexico, and Singapore. The proposed rule will be open for public comment for 30 days after publication in the Federal Register.

Additional Information Regarding the Clearing Determination:

  • DCO Submissions under Section 2(h) and Regulation 39.5 Clearing Requirement: The CFTC is proceeding with a clearing requirement proposal based on submissions from DCOs. Pursuant to CFTC regulation 39.5(b), the CFTC received submissions from four DCOs covering the interest rate swaps referenced in the proposed amended rule.
  • Proposal for Additional Interest Rate Swaps Required to be Cleared: The proposed determination would require market participants to clear certain interest rate swaps in addition to those that the CFTC previously determined are required to be cleared under section 2(h) of the Commodity Exchange Act. The additional swaps would be referenced in revised interest rate swaps classes described in regulation 50.4(a), as summarized below. The proposal identifies the following additional interest rate swaps in italics below. Items not in italics are already subject to the CFTC’s clearing requirement.

Proposed Rule[edit]


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