CFTC Proposes Swaps Clearing Determinations Under Dodd-Frank Act
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Interest-rate and credit-default swaps must be guaranteed by clearinghouses starting this fall under a proposal approved by the U.S. Commodity Futures Trading Commission to reduce risk in the $648 trillion global market.
The proposal, approved 5-0 by CFTC commissioners in a private vote, would require that four types of interest-rate swaps denominated in U.S. dollars, euros, British pounds and Japanese yen be settled at clearinghouses that stand between buyers and sellers, according to an agency statement released yesterday.