Regulatory Alerts2016-10-14 | 2016-23983Clearing Requirement Determination Under Section 2(h) of the Commodity Exchange Act for Interest Rate Swaps
The Commodity Futures Trading Commission issues a final rule expanding the mandatory clearing requirement for interest rate swaps under Section 2(h) of the Commodity Exchange Act. The amended regulation mandates that specific interest rate swaps denominated in nine additional currencies and certain U.S. dollar, euro, and sterling overnight index swaps with termination dates up to three years be cleared through registered or exempt derivatives clearing organizations. This determination aligns U.S. clearing mandates with international standards and establishes an implementation schedule for market participants to comply with the new requirements.
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