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July 31, 2012

CFTC: Which products are going to be cleared?

The CFTC put out their proposal for what products should be cleared (initially) for a 30 day comment period. Their proposal is based on discussions with eight CCPs, and therefore pretty much gathers together the main products already being cleared. The full proposal is here.

In scope for the rule are:

  • Fixed-Float & Float-Float IRS in USD, EUR, GBP and JPY, out to 50 years maturity
  • FRAs in USD, EUR, GBP and JPY to 3 years maturity
  • OIS in Fed Funds, SONIA and EONIA
  • Untranched CDX and iTraxx

Courtesy of a PDF from Davis Polk, here is the approximate compliance schedule, these dates can change.

August 1, 2012 CFTC publishes proposed clearing determination for the Proposed Swaps.
October 30, 2012 CFTC publishes final clearing determination for the Proposed Swaps.
January 28, 2013 Transactions between Category 1 entities in the Proposed Swaps must be cleared.
April 28, 2013 Transactions between Category 1 and Category 2 entities in the Proposed Swaps must be cleared.
July 27, 2013  All other transactions in the Proposed Swaps must be cleared, unless the end-user clearing exemption applies and is elected.

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