Regulatory Alerts2019-12-23 | 2019-27207Exemption From the Swap Clearing Requirement for Certain Affiliated Entities-Alternative Compliance Frameworks for Anti-Evasionary Measures
The Commodity Futures Trading Commission proposes permanent revisions to regulation 50.52 to codify alternative compliance frameworks for affiliated entities exempt from swap clearing requirements. These frameworks allow non-U.S. affiliates to satisfy anti-evasionary conditions through variation margin payments rather than mandatory clearing when foreign regimes are not comparable to U.S. standards. The proposal aims to provide legal certainty and reduce compliance burdens for international corporate groups while maintaining risk mitigation safeguards.
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