The Commodity Futures Trading Commission recently adopted regulations relating to the clearing exemption for swaps between certain affiliated entities. Pursuant to the final regulations, the clearing exemption is available to affiliates that satisfy certain conditions and reporting requirements. More information regarding the final regulations is available in Corporate and Financial Weekly Digest of April 5, 2013. 

The effective date of the final regulations is listed in the Federal Register as June 10, 2013, but due to Congressional Review Act requirements, the effective date has been automatically extended to June 18, 2013. As a result, the CFTC’s Division of Clearing and Risk issued an advisory exempting swaps between “eligible affiliate counterparties” (as such term is used in the final regulations) from the clearing requirement under Section 2(h)(1)(A) of the Commodity Exchange Act and Part 50 of CFTC Regulations until June 18, 2013. 

The CFTC staff advisory is available here.