CFTC Rule Would Exempt Affiliate Swaps From Clearing Regs

Law360, New York (August 16, 2012, 4:35 PM ET) -- Corporate affiliates may be able to engage in swaps and other derivative transactions without being subject to new clearing and other requirements under a proposal issued Thursday by U.S. futures regulators.

The U.S. Commodity Futures Trading Commission's proposed rule would require corporate affiliates to set up heightened protections against the swaps, but it would not require units of the same company to send those transactions through a central clearinghouse or post additional collateral.

“The commission is considering whether alternative methods of counterparty risk mitigation may be...
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