United States:
Federal Register: CFTC Adopts Swaps Margin Exemption For The European Stability Mechanism
04 June 2020
Cadwalader, Wickersham & Taft LLP
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A CFTC final rule to exempt certain transactions with the
European Stability Mechanism ("ESM") from uncleared swap
margin requirements was published in the Federal Register. The final
rule will go into effect on June 10, 2020.
As
previously covered, the final rule codifies existing no-action
relief to exempt uncleared swaps with the ESM from margin
requirements by explicitly excepting the ESM from the definition of
"financial end user." The rule also corrects a typo in
CFTC
Rule 23.157(c)(1) ("Custodial arrangements"), fixing
an incorrect cross-reference.
Originally published May 11, 2020.
The content of this article is intended to provide a general
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