The Day Arrives for Mandatory Clearing of Swaps

The first in a series of dates implementing mandatory swaps clearing finally arrived last week. March 11, 2013 marked the date by which swap dealers, major swap participants, and private funds active in the swaps market were required to begin clearing swaps. The March 11 deadline applies to certain index credit default swaps, or CDS, and interest rate swaps that were entered into on or after March 11, 2013. The new clearing requirement applies only to newly executed swaps, as well as changes in the ownership of a swap. Non-financial entities using swaps for hedging commercial risk, however, are exempt from clearing.  The CFTC has put together a handy chart laying out the five swap classes required to be cleared.  
Sunday, March 17, 2013/Author: David Schwartz J.D. CPA/Number of views (7202)/Comments (0)/
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