Clearing Requirement Determination Under Section 2(h) of the CEA; Proposed Rule (CFTC - Fed. Reg. Version)

The CFTC is proposing regulations to establish a clearing requirement under new section 2(h)(1)(A) of the Commodity Exchange Act, enacted under Title VII of the Dodd-Frank Act. The regulations would require that certain classes of credit default swaps (CDS) and interest rate swaps (IRS) be cleared by a derivatives clearing organization (DCO) registered with the CFTC. The CFTC is also proposing regulations to prevent evasion of the clearing requirement and related provisions.

Comments Due: September 6, 2012

Cross Reference(s): Dodd-Frank Title VII; CEA Section 2(h)(1)(A), Standard for Clearing; CFTC Proposed Rules Part 50 (Subpart A-Definitions and Clearing Requirement, Subpart B-Compliance Schedule, Subpart C-Exceptions to Clearing Requirement).

View rule release in full here(links externally to CFTC website).