The CFTC adopted final amendments to require the clearance of certain interest rate swaps ("IRS") that are denominated in specific major currencies or have particular termination dates. The final amendments were published in the Federal Register.
The mandatory clearing determination applies to swaps denominated in particular currencies in each of the four interest rate swap classes described in CFTC regulation 50.4(a).
The final rule is effective on December 13, 2016. After reviewing comments received on the two implementation scenarios proposed, the CFTC adopted a compliance date for each swap product that is the earlier of: (i) 60 days after the effective date of an analogous clearing mandate adopted by a regulator in a non-U.S. jurisdiction, provided that such requirement would not be effective until at least 60 days after the CFTC's final rule is published in the Federal Register; and (ii) two years after the CFTC's final rule is published in the Federal Register.
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