CFTC Announces Revised Compliance Schedule for Required Clearing

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The CFTC’s Division of Clearing and Risk (DCR) today announced a revised compliance schedule for required clearing of iTraxx CDS Indices. The CFTC received notice from ICE Clear Credit LLC that it has begun offering customer clearing of the iTraxx CDS indices that are subject to the clearing requirement of the Commodity Exchange Act (CEA).

Adhering to the timeframe previously issued by the Commission, Clearing Requirement Determination Under Section 2(h) of the CEA, 77 FR 74284, 74319-21 (December 13, 2012), the following compliance dates shall apply to the clearing of these iTraxx swaps:

  • Category 1 Entities: Friday, April 26, 2013
  • Category 2 Entities: Thursday, July 25, 2013
  • All other entities: Wednesday, October 23, 2013
Under the compliance schedule for required clearing, Category 1 Entities are swap dealers, security-based swap dealers, major swap participants, major security-based swap participants, and active funds. Category 2 Entities are commodity pools, private funds other than active funds, and persons predominately engaged in the business of banking or financial in nature – provided that participants are not third-party subaccounts. The final compliance date applies to third-party subaccounts and ERISA plans.

iTraxx is the name for the family of credit default swap index products covering regions of Europe, Australia, Japan, and Asia, and are comprised of the most liquid, traded parts of the market. This group makes up a large sector of the overall credit derivatives market. The iTraxx suite of indices are owned, managed, compiled and published by Markit, who also licenses market makers.

Read more of the CFTC’s full announcement.


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About the Author

Elan Mendel
Elan Mendel is an associate with Shipkevich PLLC, and has done registration, compliance, and enforcement defense work for commodities, futures and forex firms registered with the CFTC and NFA as FCMs, RFEDs, and others. Elan also specializes in domestic and cross-border insolvency issues.