US swaps users want CFTC rules lifted in Libor switch

Dodd-Frank should not catch contracts amended as part of move to new rates, letter argues

Swaps users in the US have called for guidance on the regulatory treatment of trades that are amended as part of the market’s transition away from US dollar Libor. Without some form of exemption, trades that pre-date clearing, margining and other post-crisis rules could suddenly be dragged into scope if changes are made to the contracts.

In a letter dated July 12, the Alternative Reference Rates Committee (ARRC) – an industry group convened by the US Federal Reserve to help the market break its