A CFTC final rule to exempt certain transactions with the European Stability Mechanism ("ESM") from uncleared swap margin requirements was published in the Federal Register. The final rule will go into effect on June 10, 2020.
As previously covered, the final rule codifies existing no-action relief to exempt uncleared swaps with the ESM from margin requirements by explicitly excepting the ESM from the definition of "financial end user." The rule also corrects a typo in CFTC Rule 23.157(c)(1) ("Custodial arrangements"), fixing an incorrect cross-reference.
Originally published May 11, 2020.
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