Federal Register: CFTC Proposes Amendments to Clearing Exemptions
A CFTC proposal to make several amendments to exemptions from swap clearing requirements, including for certain sovereign and small banking entities, was published in the Federal Register. Comments on the proposal must be submitted by July 13, 2020.
As previously covered, the proposal would, among other things, make the following changes:
- Small Bank Exception. The proposal would move the exception for "small banks" (generally, certain banking entities with less than $10 billion in assets) from Rule 50.50(d) to new Rule 50.53.
- Sovereigns and Multilaterals. The CFTC proposed new Rule 50.75, which would provide an exemption from clearing for swaps with "central banks" and "sovereign entities." The CFTC also proposed new Rule 50.76, which would provide an exemption from clearing for swaps with a specified list of multilateral development institutions along with "any other entity that provides financing for national or regional development in which the U.S. government is a shareholder or contributing member."
- Other Banking Entities. Proposed new Rules 50.77, 50.78 and 50.79 would provide clearing exceptions for certain community development financial institutions, bank holding companies, and savings and loan holding companies.
- Compliance Schedule. A new compliance schedule would be adopted, as per Rule 50.26, that includes prior compliance dates from 2012 to 2016.