“CFTC Issues Releases Regarding Collateral of Cleared Swaps Customers and Collateral of Counterparties to Uncleared Swaps”
The Commodity Futures Trading Commission (the “CFTC”) recently issued two releases under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act concerning collateral for cleared and uncleared swaps. The first release, issued on December 2, 2010, is an advanced notice of rulemaking seeking comment on the appropriate model for protecting margin collateral posted by customers clearing swaps transactions. The second release, a proposed rule issued on December 3, 2010, sets forth the CFTC’s proposed requirements for the protection of the collateral of counterparties to uncleared swaps.
This Stroock Special Bulletin highlights the major provisions of these CFTC releases