Regulatory Alerts2012-07-30 | 2012-18383Swap Transaction Compliance and Implementation Schedule: Clearing Requirement Under Section 2(h) of the CEA
The Commodity Futures Trading Commission adopted regulations establishing a phased compliance schedule for the mandatory clearing requirement under Section 2(h)(1)(A) of the Commodity Exchange Act. The rule mandates that Category 1 entities clear swaps within 90 days, Category 2 entities within 180 days, and all other market participants within 270 days following the publication of a final clearing determination. This staggered timeline is designed to facilitate an orderly transition to the new regulatory regime while minimizing market disruption.
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