Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
USD
|
Index: |
LIBOR
|
Product Tenor: |
28 days to 50 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., Eurex Clearing AG, and OTC Clearing Hong Kong Limited.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG, and OTC Clearing Hong Kong Limited are authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
EUR
|
Index: |
EURIBOR
|
Product Tenor: |
28 days to 50 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Effective Date: |
Effective for all entity categories.
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Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
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Last Update of the Regime: |
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Authority: |
United States of America-Commodity Futures Trading Commission
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Jurisdiction: |
United States of America
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Product features |
Product type: |
Fixed-to-floating swap
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Currency: |
GBP
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Index: |
LIBOR
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Product Tenor: |
28 days to 50 years
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Optionality: |
No
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Single Or Dual Currency: |
Single
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Conditional Notional Amount: |
No
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Other Product Characteristics: |
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Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
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Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
JPY
|
Index: |
LIBOR
|
Product Tenor: |
28 days to 30 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., Eurex Clearing AG, and JSCC.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG, and JSCC are authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
AUD
|
Index: |
BBSW
|
Product Tenor: |
28 days to 30 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and ASX Clear (Futures) Pty Limited.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, ASX Clear (Futures) Pty Limited is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Effective Date: |
Effective for all entity categories
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Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019
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Last Update of the Regime: |
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Authority: |
United States of America-Commodity Futures Trading Commission
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Jurisdiction: |
United States of America
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Product features |
Product type: |
Fixed-to-floating swap
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Currency: |
CAD
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Index: |
CDOR
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Product Tenor: |
28 days to 30 years
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Optionality: |
No
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Single Or Dual Currency: |
Single
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Conditional Notional Amount: |
No
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Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
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Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
HKD
|
Index: |
HIBOR
|
Product Tenor: |
28 days to 10 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and OTC Clearing Hong Kong Limited
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, OTC Clearing Hong Kong Limited is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
MXN
|
Index: |
TIIE - BANXICO
|
Product Tenor: |
28 days to 21 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
NOK
|
Index: |
NIBOR
|
Product Tenor: |
28 days to 10 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
PLN
|
Index: |
WIBOR
|
Product Tenor: |
28 days to 10 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
SGD
|
Index: |
SOR-VWAP
|
Product Tenor: |
28 days to 10 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Singapore Exchange Derivatives Clearing Limited
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
SEK
|
Index: |
STIBOR
|
Product Tenor: |
28 days to 15 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Effective Date: |
Effective for all entity categories.
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Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
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Last Update of the Regime: |
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Authority: |
United States of America-Commodity Futures Trading Commission
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Jurisdiction: |
United States of America
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Product features |
Product type: |
Fixed-to-floating swap
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Currency: |
CHF
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Index: |
LIBOR
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Product Tenor: |
28 days to 30 years
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Optionality: |
No
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Single Or Dual Currency: |
Single
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Conditional Notional Amount: |
No
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Other Product Characteristics: |
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Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
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Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Basis swap
|
Currency: |
USD
|
Index: |
LIBOR
|
Product Tenor: |
28 days to 50 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Basis swap
|
Currency: |
EUR
|
Index: |
EURIBOR
|
Product Tenor: |
28 days to 50 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Effective Date: |
Effective for all entity categories.
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Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
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Last Update of the Regime: |
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Authority: |
United States of America-Commodity Futures Trading Commission
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Jurisdiction: |
United States of America
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Product features |
Product type: |
Basis swap
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Currency: |
GBP
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Index: |
LIBOR
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Product Tenor: |
28 days to 50 years
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Optionality: |
No
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Single Or Dual Currency: |
Single
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Conditional Notional Amount: |
No
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Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Basis swap
|
Currency: |
JPY
|
Index: |
LIBOR
|
Product Tenor: |
28 days to 30 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and JSCC.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, JSCC is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Basis swap
|
Currency: |
AUD
|
Index: |
BBSW
|
Product Tenor: |
28 days to 30 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. LCH Ltd., and ASX Clear (Futures) Pty Limited.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, ASX Clear (Futures) Pty Limited is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Forward rate agreement
|
Currency: |
USD
|
Index: |
LIBOR
|
Product Tenor: |
3 days to 3 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Forward rate agreement
|
Currency: |
EUR
|
Index: |
EURIBOR
|
Product Tenor: |
3 days to 3 years
|
Optionality: |
Yes
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
|
|
Effective Date: |
Effective for all entity categories.
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Basis swap
|
Currency: |
GBP
|
Index: |
LIBOR
|
Product Tenor: |
3 days to 3 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Forward rate agreement
|
Currency: |
JPY
|
Index: |
LIBOR
|
Product Tenor: |
3 days to 3 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Forward rate agreement
|
Currency: |
PLN
|
Index: |
WIBOR
|
Product Tenor: |
3 days to 2 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Forward rate agreement
|
Currency: |
NOK
|
Index: |
NIBOR
|
Product Tenor: |
3 days to 2 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Forward rate agreement
|
Currency: |
SEK
|
Index: |
STIBOR
|
Product Tenor: |
3 days to 3 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Effective Date: |
Effective for all entity categories.
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Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
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Last Update of the Regime: |
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Authority: |
United States of America-Commodity Futures Trading Commission
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Jurisdiction: |
United States of America
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Product features |
Product type: |
Overnight index swap
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Currency: |
USD
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Index: |
FedFunds
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Product Tenor: |
7 days to 3 years
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Optionality: |
No
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Single Or Dual Currency: |
Single
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Conditional Notional Amount: |
No
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Other Product Characteristics: |
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Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
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Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Overnight index swap
|
Currency: |
EUR
|
Index: |
EONIA
|
Product Tenor: |
7 days to 3 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Overnight index swap
|
Currency: |
GBP
|
Index: |
SONIA
|
Product Tenor: |
7 days to 3 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and Eurex Clearing AG.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, Eurex Clearing AG is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
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Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
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Last Update of the Regime: |
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Authority: |
United States of America-Commodity Futures Trading Commission
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Jurisdiction: |
United States of America
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Product features |
Product type: |
Overnight index swap
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Currency: |
AUD
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Index: |
AONIA-OIS
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Product Tenor: |
7 days to 2 years
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Optionality: |
No
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Single Or Dual Currency: |
Single
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Conditional Notional Amount: |
No
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Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc., LCH Ltd., and ASX Clear (Futures) Pty Limited.
View Note
US - CFTC
Description of eligible CCPs
The eligible CCPs listed for each swap category reflect those CCPs that (i) are authorised by the CFTC to offer the swap for clearing, and (ii) offered the swap for clearing as of the date of this update. In addition, some of the eligible CCPs are authorised to clear swaps for U.S. proprietary accounts only, not for U.S. customer accounts. Please note that this information is subject to change and should be verified independently by the user.
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Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
All of the CCPs are authorised (by registration or exemption) to provide clearing for all products in this row. However, at this time, ASX Clear (Futures) Pty Limited is authorised to clear for U.S. proprietary accounts only, not for U.S. customer accounts.
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|
Authority: |
United States of America-Commodity Futures Trading Commission
|
Jurisdiction: |
United States of America
|
Product features |
Product type: |
Overnight index swap
|
Currency: |
CAD
|
Index: |
CORRA-OIS
|
Product Tenor: |
7 days to 2 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
Chicago Mercantile Exchange, Inc. and LCH Ltd.
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Affiliated entities / group entities exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Pre-existing transactions exemption: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
Other exemptions, if any: |
Yes
View Note
US – CFTC
Exemptions and exceptions to the central clearing requirements
1. Exemptions and exceptions to the central clearing requirements include:
· Qualifying pre-existing transactions – Swaps entered into before July 21, 2010 or swaps entered into before the application of the clearing requirement for a particular class of swaps, as long as swaps are reported to a swap data repository.
Source: CFTC Regulation §50.5. See also Clearing Requirement Determination Under Section 2(h) of the CEA – Final Rule, 77 FR 74284, dated 13 December 2012.
· Qualifying non-financial entities – Swaps where one of the counterparties to the swap: (i) is not a financial entity; (ii) is using swaps to hedge or mitigate commercial risk; and (iii) notifies the CFTC, in a manner set forth by the CFTC, how it generally meets its financial obligations associated with entering into non-cleared swaps.
Source: CFTC Regulation §50.50. See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying insured small banks, savings associations, farm credit system institutions, and credit unions – Swaps entered into by certain banks, savings associations, farm credit system institutions, or credit unions, if the entity has total assets of $10 billion or less.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(ii) and CFTC Regulation §50.50(d). See also End-User Exception to Mandatory Clearing of Swaps – Final Rule, 77 FR 42559, dated 19 July 2012.
· Qualifying captive finance companies – Swaps entered into by an entity whose primary business is providing financing to facilitate the purchase or lease of products, and that uses derivatives for the purpose of hedging commercial risk related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.
Source: Commodity Exchange Act, Section 2(h)(7)(C)(iii) and CFTC Letter No. 15-27, dated 4 May 2015.
· Qualifying cooperatives – Swaps entered into by qualifying cooperatives if the cooperative’s members are either non-financial entities or other cooperatives whose members are non-financial entities. In addition, the swap must be entered into in connection with originating loans to cooperative members or hedge or mitigate commercial risk related to loans to, or swaps with, members.
Source: CFTC Regulation §50.51. See also Clearing Exemption for Certain Swaps Entered Into by Cooperatives – Final Rule, 78 FR 52286, dated 22 August 2013.
· Qualifying affiliated counterparties – Swaps between certain affiliated entities within a corporate group.
Source: CFTC Regulation §50.52 and related CFTC no-action letters available at www.cftc.gov. See also Clearing Exemption for Swaps Between Certain Affiliated Entities – Final Rule, 78 FR 21749, dated 11 April 2013.
· Qualifying treasury affiliates – Swaps where one of the counterparties to the swap is a financial entity that is acting on behalf of a non-financial affiliate within a corporate group for the purpose of hedging or mitigating commercial risk.
Source: Commodity Exchange Act, Section 2(h)(7)(D) and CFTC Letter No. 14-144, dated 26 November 2014.
2. No-action relief offered from the central clearing requirements:
· Qualifying small bank holding companies or small savings and loan holding companies – Swaps where one of the counterparties to the swap is a small bank holding company or a small savings and loan holding company satisfying certain conditions.
Source: CFTC Letter No. 16-01, dated 8 January 2016.
· Qualifying community development financial institutions – Swaps where one of the counterparties to the swap is a community development financial institution satisfying certain conditions.
Source: CFTC Letter No. 16-02, dated 8 January 2016.
· Qualifying new swaps resulting from a multilateral compression exercise – Swaps resulting from a multilateral compression exercise if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-01, dated 18 March 2013.
· Qualifying partial novation or termination – Swaps resulting from a partial novation or partial termination of a swap if the original swap was executed prior to an applicable 2013 compliance date.
Source: CFTC Letter No. 13-02, dated 20 March 2013.
· Corporación Andina de Fomento (CAF) (international financial institution) – Swaps entered into by the Corporación Andina de Fomento that satisfy certain conditions.
Source: CFTC Letter No. 13-25, dated 10 June 2013.
· Banco Centroamericano de Integración Económica (international financial institution) – Swaps entered into by the Banco Centroamericano de Integración Económica that satisfy certain conditions.
Source: CFTC Letter No. 17-57, dated 7 November 2017. o Source: CFTC Letter No. 17-57, dated 7 November 2017.
· European Stability Mechanism (international financial institution) – Swaps entered into by the European Stability Mechanism that satisfy certain conditions.
Source: CFTC Letter No. 17-58, dated 7 November 2017.
· North American Development Bank (international financial institution) – Swaps entered into by the North American Development Bank that satisfy certain conditions.
Source: CFTC Letter No. 17-59, dated 7 November 2017.
|
|
Effective Date: |
Effective for all entity categories.
|
|
Reference: |
CFTC, Swaps Subject to Clearing Requirement (Pages 1-3): https://www.cftc.gov/idc/groups/public/@otherif/documents/ifdocs/clearingrequirementcharts9-16.pdf, accessed on 25 September 2019.
|
|
Last Update of the Regime: |
|