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ARTICLE · 20 JULY 2012

Final Definition Of "Swap" And Final End-User Exception

Vinson & Elkins LLP
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On July 10, 2012, the Commodity Futures Trading Commission ("CFTC") approved the final definition for the term "swap" and the final rule that exempts end users from the clearing requirement for swaps in the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 111-203, 124 Stat. 1376 (2010)) (the "Dodd-Frank Act").

United StatesFinance and Banking
Michael McKay
Michael McKay
Mark Proctor
Mark Proctor
Zev Wexler
Zev Wexler
Daniel Nossa
Daniel Nossa

Originally published in V&E Finance Update E-communication, July 16, 2012

On July 10, 2012, the Commodity Futures Trading Commission ("CFTC") approved the final definition for the term "swap" and the final rule that exempts end users from the clearing requirement for swaps in the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 111-203, 124 Stat. 1376 (2010)) (the "Dodd-Frank Act"). These are significant developments, since any derivative product that constitutes a "swap" will be subject to regulation unless an exemption applies, and entities that fall within the "end user" definition will not be subject to the clearing requirement.

What Constitutes a "Swap"?

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