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New U.S. tax regulations provide “non-recognition” treatment for nonassigning counterparty on transferred or assigned derivatives

  • Sidley Austin LLP
  • -
  • USA
  • -
  • July 25 2011

The U.S. Department of Treasury has issued temporary and proposed regulations (the “New Regulations”) addressing whether there is a deemed exchange (resulting in a taxable event) by the nonassigning counterparty (i.e., the remaining party) when the other counterparty assigns or transfers its interest in certain derivative contracts