US securitisation groups seek clarity on June 10 clearing deadline
US clearing rules do not exempt SPVs, but industry is split on whether other exemptions - for unclearable swaps - would apply
Concerns are mounting ahead of the US clearing mandate on June 10 about the impact on the securitisation market if no exemption is provided for trades with special purpose vehicles (SPVs).
SPVs typically hold the underlying assets in a securitisation, issue the debt and also execute swaps to manage currency and interest rate risk. But they do so on an uncollateralised basis, normally facing the bank that created the vehicle. They tend to be unstaffed, with only an administrator to look after day
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