On April 1st, the CFTC exempted affiliated companies from having to centrally clear their swaps. Under the final rule, affiliated counterparties may elect not to centrally clear a swap if those counterparties are majority-owned affiliates whose financial statements are included in the same consolidated financial statements and both affiliated counterparties elect not to clear the swap. In addition, both affiliated counterparties must elect not to clear the swap, the terms of the swap must be documented in a swap trading relationship document, the swap must be subject to a centralized risk management program that is reasonably designed to monitor and manage the risks associated with the swap, and each swap entered into by the affiliated counterparties with unaffiliated counterparties must be cleared. The new final rule also sets forth the requirements for clearing swaps with unaffiliated counterparties. Those clearing requirements may be met by: (1) complying with the CFTC's clearing requirement; (2) complying with a foreign jurisdiction's clearing mandate that the CFTC has determined is comparable; (3) complying with an exception or exemption from the clearing requirement under the Commodity Exchange Act or CFTC regulations; (4) complying with an exception or exemption under a foreign jurisdiction's clearing mandate; or (5) clearing such swaps through a registered derivatives clearing organization. The final rule also requires the reporting counterparty to report to a swap data repository certain information. The new rule will become effective 60 days after publication in the Federal Register, which is expected shortly. CFTC Press Release.