Federal Register: CFTC Adopts Swaps Margin Exemption for the European Stability Mechanism
A CFTC final rule to exempt certain transactions with the European Stability Mechanism ("ESM") from uncleared swap margin requirements was published in the Federal Register. The final rule will go into effect on June 10, 2020.
As previously covered, the final rule codifies existing no-action relief to exempt uncleared swaps with the ESM from margin requirements by explicitly excepting the ESM from the definition of "financial end user." The rule also corrects a typo in CFTC Rule 23.157(c)(1) ("Custodial arrangements"), fixing an incorrect cross-reference.
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- CFTC Rule 23.151: Definitions applicable to margin requirements.
- CFTC Rule 23.157: Custodial arrangements.
- 85 FR 27674 - Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
- CFTC Effective Date: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
- Commodity Exchange Act
- Derivatives Clearing Organizations (DCOs)
- Margin for Swaps and Security-Based Swaps
- Banking Materials
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