The Commodity Futures Trading Commission has proposed to amend Part 45 of its regulations insofar as they relate to the reporting to a swaps data repository of swaps that are cleared by a derivatives clearing organization (DCO). The proposed amendment is designed to better accommodate the multi-swap framework of such cleared swaps. Specifically, the CFTC has proposed to define the terms “original swap” and “clearing swap” as follows: (1) an original swap is a swap that has been accepted for clearing by a DCO; and (2) a clearing swap is a swap created by the DCO with the DCO as a counterparty. As proposed, original swaps would include swaps commonly referred to as “alpha” swaps, whereas clearing swaps would include swaps commonly referred to as “beta” and “gamma” swaps.
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