On May 2 2016 the US Commodity Futures Trading Commission (CFTC) approved a final rule to amend a requirement in CFTC Regulation 23.500(i) that swap dealers and major swap participants exchange the terms of swaps with their counterparties for portfolio reconciliation.(1)

Swap dealers and major swap participants need only exchange the material terms of swaps; the final rule also amends the definition of 'material terms' in CFTC Regulation 23.500(g).

The final rule benefits swap dealers, major swap participants and their counterparties by allowing them to focus on reconciling data fields that affect swap valuation and counterparty obligations, without impairing the CFTC's ability to oversee and regulate the swaps markets.

For further information on this topic please contact Donna M Parisi, Geoffrey B Goldman or Azam H Aziz at Shearman & Sterling LLP by telephone (+1 212 848 4000) or email (dparisi@shearman.com,geoffrey.goldman@shearman.com or aaziz@shearman.com). The Shearman & Sterling website can be accessed at www.shearman.com.

Endnotes

(1) The CFTC press release is available here and the final rule is available here.

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