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02 November 2016
On September 28 2016 the Commodity Futures Trading Commission (CFTC) expanded the existing clearing requirement to interest rate swaps through an amendment to Regulation 50.4(a), requiring that market participants submit a covered swap for clearing by a derivatives clearing organisation.(1)
The amendment expanded four interest rate swap classes to require clearing by a derivatives clearing organisation:
Unlike the proposed rulemaking, Australian dollar-denominated forward rate agreements were not included in the final rule. Compliance with the final rule will be phased in over a two-year period according to an implementation schedule based on when analogous clearing requirements will take effect in other jurisdictions.
For further information on this topic please contact Donna M Parisi, Geoffrey B Goldman or Azam H Aziz at Shearman & Sterling LLP by telephone (+1 212 848 4000) or email (firstname.lastname@example.org, email@example.com or firstname.lastname@example.org). The Shearman & Sterling website can be accessed at www.shearman.com.
(1) The final rule is available at www.cftc.gov/idc/groups/public/@newsroom/documents/file/federalregister092816.pdf, the question and answer document is available at www.cftc.gov/idc/groups/public/@newsroom/documents/file/irsclearing_qa092816.pdf.
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