On November 16, 2012, the Department of the Treasury issued a written determination exempting foreign exchange swaps and foreign exchange forwards from the definition of “swap,” in accordance with the applicable provisions of the Commodity Exchange Act (“CEA”). In making its determination that foreign exchange swaps and foreign exchange forwards should not be regulated as swaps under the CEA, Treasury noted the distinctive characteristics of these instruments and its belief that requiring central clearing and trading under the CEA of these instruments would potentially introduce operational risks and challenges to the current settlement process. Treasury noted that its authority to issue a determination is limited to foreign exchange swaps and foreign exchange forwards and therefore that its determination does not extend to other foreign exchange derivatives.