CFTC frees amended legacy swaps from margin net
US no-action relief for compression-triggered replacement trades spurs hope for EU alignment
The US derivatives regulator has taken steps to ensure legacy swaps are not swept into scope for non-cleared margin rules as a result of certain amendments and lifecycle events, which technically create new instruments that could be subject to costly collateralisation requirements.
The no-action relief issued by the Commodity Futures Trading Commission (CFTC) on June 6 brings the US approach closer in line with accepted interpretation of the treatment of amended legacy instruments under the
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