Regulatory Alerts2013-04-11 | 2013-07970Clearing Exemption for Swaps Between Certain Affiliated Entities
The Commodity Futures Trading Commission adopted a final rule exempting swaps between certain affiliated entities within a corporate group from the mandatory clearing requirement under the Commodity Exchange Act. The exemption applies only if the counterparties maintain consolidated financial statements with majority ownership ties and satisfy specific risk-mitigating conditions, including centralized risk management and variation margin requirements. Affiliated entities must also comply with reporting obligations to a registered swap data repository or the Commission to elect this inter-affiliate exemption.
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