CFTC frees amended legacy swaps from margin net

US no-action relief for compression-triggered replacement trades spurs hope for EU alignment

dollars escape cage - web - Getty.jpg
US derivatives regulator takes steps to ensure legacy swaps are not caught

The US derivatives regulator has taken steps to ensure legacy swaps are not swept into scope for non-cleared margin rules as a result of certain amendments and lifecycle events, which technically create new instruments that could be subject to costly collateralisation requirements.

The no-action relief issued by the Commodity Futures Trading Commission (CFTC) on June 6 brings the US approach closer in line with accepted interpretation of the treatment of amended legacy instruments under the

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: