Swaps Subject to Mandatory Exchange-Trading: Update I
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- Financial entities (such as private funds, commodity pools, swap dealers, banks, insurance companies and other entities predominantly engaged in financial activities) may have to execute certain swaps on an exchange or trading platform starting in mid-February, instead of entering into such swaps over the counter.
- The swaps that will be subject to mandatory exchange-trading beginning in mid-February are: (1) certain fixed-to-floating interest rate swaps with spot and forward start dates denominated in USD, Euro or Sterling and based on USD LIBOR, EURIBOR or British LIBOR, with tenors ranging from 1 year to 30 years (with the exact tenors depending on the type of swap); and (2) certain credit default swaps on CDX North America and iTraxx Europe indices.
- The compliance dates for mandatory exchange-trading are staggered across February 15, 21 and 26. Additional swaps will be subject to mandatory exchange-trading in the future once certain additional MAT determinations (such as that of Bloomberg's SEF) are deemed certified.