Regulatory Alerts2012-08-07 | 2012-18382Clearing Requirement Determination Under Section 2(h) of the CEA
The Commodity Futures Trading Commission proposes regulations to establish a mandatory clearing requirement for certain classes of credit default swaps and interest rate swaps under Section 2(h) of the Commodity Exchange Act. These rules would require that specified swap transactions be cleared through registered derivatives clearing organizations to mitigate counterparty credit risk and systemic instability. The proposal also includes measures to prevent evasion of the clearing requirement and related provisions while inviting public comment on the regulatory framework.
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