Regulatory Alerts2020-07-22 | 2020-14390Exemption From the Swap Clearing Requirement for Certain Affiliated Entities-Alternative Compliance Frameworks for Anti-Evasionary Measures
The Commodity Futures Trading Commission adopted amendments to regulation 50.52 to permanently establish alternative compliance frameworks for the anti-evasionary conditions of the Inter-Affiliate Exemption from the swap clearing requirement. These changes codify temporary relief by allowing non-U.S. affiliates in specific jurisdictions to comply with outward-facing swap conditions without mandatory clearing, provided they meet variation margin and risk management standards. The rule aims to prevent evasion of clearing mandates while accommodating international corporate groups operating in jurisdictions without comparable domestic clearing regimes.
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