At last!
US Treasury Secretary has finally determined that FX Swaps and FX Forwards should be exempt from the definition of Swaps under Dodd Frank. (full details here or here)
SEF Trading & Central Clearing (Exempt): FX Swaps and FX Fwds will NOT be required to trade on SEFs, or be centrally cleared.
Trade Reporting (Required): FX Swaps and FX Fwds will remain subject to reporting requirements according to the CFTC (see earlier post here)
Other FX derivatives subject to Clearing & Exchange Requirements: FX Options, Currency Swaps and Non Deliverable Forwards (NDFs) are not exempt from Dodd Frank, as they do not satisfy the statutory definition of an FX Swap of FX Forward.
As usual, the Streetwise Professor has a good analysis of the determination, worth reading here
Other coverage includes:
WSJ here
FT here
Filed under: Dodd Frank, FX, Regulation | Tagged: CCP, Dodd Frank, FX, regulation |
SingleDealerPlatforms.Org 
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