Tag Archives: interest rate swaps

Potential New Clearing Determinations Under Consideration by the CFTC

By Andrew Cross and Tom Watterson The CFTC is currently reviewing clearing determinations for two new classes of swaps. The CFTC is currently reviewing what would be the first clearing determination for non-deliverable FX forwards (NDFs). The clearing determination would cover NDFs in USD with the following currencies: Brazilian real (BRL) Russian ruble (RUB) Indian … Continue Reading

Breaking: CFTC Certifies the First MAT Submission

By Andrew Cross and Tom Watterson Attention investment managers, banks, CPOs, insurance companies and anyone who currently must clear their interest rate swaps, the requirement to trade interest rate swaps on a swap execution facility ("SEF") will come into force on February 15, 2014. Part 1: What will be covered by the trading mandate? The … Continue Reading

CFTC Taking Comments on Requiring Interest Rate Swaps to be Executed on SEFs or DCMs

By Andrew Cross and Tom Watterson On Friday, Javelin SEF made the first “Made Available to Trade” submission (an “MAT Submission”) to the CFTC for certain interest rate swaps. Javelin’s submission, if not objected to by the CFTC, would cause those interest rate swaps come under the trading requirement, and those swaps would then be … Continue Reading

The Debt Ceiling Debate: It’s not Just for CDS Anymore

By Andrew Cross and Tom Watterson Last week ISDA announced that, in the event of a default by the U.S. on its debt following the failure to raise the debt ceiling, the sellers of CDS on U.S. debt would pay-out, at most, only $3.6 billion. The potential default, however, is also impacting┬áthe interest rate swap … Continue Reading

Part 2 – Entity Definitional Rules: The Exclusion for the Origination of Loans

Background: The Statute, The Rule Section 1a(49)(A) of the Commodity Exchange Act contains the statutory definition of the term "swap dealer" and excludes an insured depository institute ("IDI") "to the extent it offers to enter into a swap with a customer in connection with originating a loan with that customer." CFTC Rule 1.3(ggg)(5) implements this statutory … Continue Reading