Update On Swaps Clearing Timetable

We wanted to inform you of recent statements from the CFTC staff regarding the phasing-in of the mandatory clearing requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). As you may recall, on July 24, 2012, the CFTC issued proposed rules that would require certain interest rate swaps and credit default index swaps to be cleared. We expect that those rules will be finalized in the next few weeks. In July, the CFTC also adopted final rules that created a phased-in implementation schedule for compliance with mandatory clearing determinations under the Dodd-Frank Act, with different compliance dates for different categories of market participant. Certain types of market participants (“category 1 entities”) are subject to a mandatory clearing determination 90 days after such determination is published in the Federal Register, certain other types of market participants (“category 2 entities”) are subject to a mandatory clearing determination 180