• CFTC Adopts Final Rules and Interpretations Further Defining Products and Final End-User Clearing Exception Rule; Proposes Clearing Exception for Swaps Entered into by Certain Cooperatives
  • July 16, 2012
  • Law Firm: Cadwalader Wickersham Taft LLP - New York Office
  • The Commodity Futures Trading Commission (“CFTC”) held an open meeting yesterday, July 10, 2012, to consider Final Rules and Interpretations (i) further defining the terms “swap,” securitybased swap,” “security-based swap agreement,”(ii) regarding mixed swaps, and (iii) governing books and records for security-based swap agreements (the “Final Product Rules”) pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”).1 The CFTC promulgated the Final Product Rules jointly with the Securities and Exchange Commission (“SEC”). The CFTC also voted to adopt the Final Rule on End-User Exception to Mandatory Clearing of Swaps (the “Final End-User Exception”). Finally, the CFTC issued a proposed rule to exempt from the mandatory clearing requirement, certain swaps executed by cooperatives that are financial entities with assets in excess of $10 billion (“Proposed Rule”).