CFTC Expands Mandatory Clearing Requirement: CFTC Expands Clearing Requirement Under Section 2(h) of the Commodity Exchange Act to Apply to Additional Classes of Interest Rate Swaps

Sullivan & Cromwell LLP - September 29, 2016
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On September 28, 2016, the Commodity Futures Trading Commission (the “Commission”) voted to expand the mandatory clearing requirement under Section 2(h) of the Commodity Exchange Act to apply to additional categories of interest rate swaps, including fixed-to-floating interest rate swaps, basis swaps, forward rate agreements, and overnight index swaps with respect to particular currencies, that were not covered by the Commission’s initial mandatory clearing requirement determination.  Mandatory clearing for the swap classes added by this new expanded clearing determination will be phased in based on the mandatory clearing compliance date in the home jurisdiction for the relevant currency.