FDIC and FRB Notices Regarding New Mandatory Clearing Requirements for OTC Interest Rate and CDS Contracts

New mandatory clearing requirements for certain interest rate and credit default swap contracts take effect on June 10, 2013, for all state non-member institutions. These requirements apply to any covered transaction entered into on or after June 10, 2013, unless the end-user exception or inter-affiliate exemption under the CFTC rules applies.

See: FDIC Advisory and FRB Regulatory Letter.See also:"CFTC Time-Limited No-Action Relief to Small Banks from the Board Approval Requirement of the Clearing Requirement (Letter 13-26) (with Lofchie Comment)."Related News: "OCC Warns Non-Dealer Banks of Imminent Effect of Clearing Requirement" (June 7, 2013).