The U.S. Commodity Futures Trading Commission proposed exemptingtrades between units of the same company from Dodd-Frank Actclearinghouse rules designed to limit risk in the $648 trillionswaps market.

In a 3-2 private vote, CFTC commissioners proposed freeingso-called interaffiliate trades from requirements that swaps beguaranteed at central clearinghouses that protect buyers andsellers against defaults. The proposal would require collateral tobe exchanged between affiliates to reduce trade risks.

“Though transactions between affiliates pose risk, much of therisk relates to their affiliates rather than external parties,”CFTC Chairman Gary Gensler said in a statement yesterday.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.