CFTC Imposes Mandatory Clearing On Certain Interest Rate Swaps

The CFTC voted unanimously to require the clearance of certain interest rate swaps ("IRS") that are denominated in specific major currencies or have particular termination dates.

The mandatory clearing determination applies to swaps denominated in particular currencies in each of the four interest rate swap classes described in CFTC regulation 50.4(a). The final expanded interest rate swap classes include the following:

• fixed-to-floating interest rate swaps denominated in Australian dollars ("AUD"), Canadian dollars ("CAD"), Hong Kong dollars ("HKD"), Mexican pesos ("MXN"), Norwegian kroner ("NOK"), Polish złoty ("PLN"), Singapore dollars ("SGD"), Swedish kronor ("SEK") and Swiss francs ("CHF");