OTC Derivatives Clearing begins for Category III Entities

| FinReg

Yesterday, the CFTC announced that it has implemented the third phase of required clearing for credit default swaps and interest rate swaps.  This so-called “Category III” clearing deadline, which applies to accounts managed by third-party investment managers, ERISA pension plans and entities that were not subject to the Commission’s first two implementation deadlines, requires firms to clear derivatives trades through a centralized clearing party.  The “category I” clearing deadline, which applied a similar set of rules to swap dealers, was implemented on March 10 of this year and the “category II” deadline, which applied to commodity pools, hedge funds and non swap dealer banks, was implemented on June 10.

To read the full CFTC announcement, click here.

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