Ready, Set, Clear: FIA and ISDA Publish Standardized Agreement Addressing Execution Issues for Cleared Swaps – Teigland-Hunt LLP Client AlertJun 17, 2011
In anticipation of growing demand for swap clearing with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Futures Industry Association (FIA) and the International Swaps and Derivatives Association, Inc. (ISDA) today published their first standardized form of agreement covering cleared swaps. The “Cleared Derivatives Execution Agreement” will allow parties entering into swaps that are intended to be cleared to address certain issues that may arise in connection with the execution of such transactions. In the near future FIA also will be publishing a standardized form of addendum for futures clearing agreements between customers and their futures commission merchants (FCMs) that addresses terms related to the clearing of swaps.
The Commodity Futures Trading Commission (“CFTC”) recently issued an interim final rule (the “Rule”) requiring the reporting of swap transactions that were open as of July 21, 2010, the date of enactment of the Dodd‐Frank Act (“Pre‐Enactment Unexpired Swaps”). Comments onthe Rule will be accepted by the CFTC until November 15, 2010.
“OTC Derivatives Reform in a Nutshell: U.S. Regulatory Agencies to Play Major Role in Determining Scope and Impact of New Derivatives Regime” – Teigland-Hunt LLP Client AlertJul 23, 2010
CFTC, SEC to embark on unprecedented rulemaking effort to implement market reforms