Our Finance Group helps clients navigate the business and legal complexities of novel and multidimensional debt financing transactions. We fully understand the challenges faced by borrowers, investors and lenders throughout a company’s lifecycle, from evolving techniques in acquisition finance to the tensions inherent in distressed situations. We are the firm of choice for the most innovative and complex financing matters, including bespoke structured financings and whole-business securitizations of novel assets and restructurings of multibillion-dollar companies.
CFTC Issues Clearing Determination for Certain Interest Rate and Credit Default Swaps
December 26, 2012 Read the memo
On December 13, 2012, the Commodity Futures Trading Commission issued a determination that certain interest rate and credit default swaps are required to be cleared, the first clearing determinations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The CFTC has adopted a phase-in approach to clearing, with compliance dates staggered by counterparty type to allow for time to address anticipated technological challenges and build familiarity with the process. Negotiation and execution of documentation designed for the clearing of swaps will need to be completed prior to the applicable compliance date. Corporate end-users and other non-financial entities may elect the end-user exception to the clearing requirement if the swaps are being used to hedge or mitigate commercial risk and they report to the CFTC how they generally meet their financial obligations under non-cleared swaps.