The US Treasury has now issued a final determination to exempt FX Forwards and FX Swaps from the narrow definition of Swap under Dodd-Frank Act (DFA).
Whilst FX Forwards and Swaps will be exempt from the DFAs execution and clearing requirements, they will however remain subject to mandatory reporting of trades to recognised Trade Repositories such as DTCC.
Other FX derivatives including FX Options, Currency Swaps and NDFs will still remain subject to the execution, clearing and reporting requirements for OTC Derivatives under the DFA.
This is a good decision, and removes the uncertainty which surfaced back in April, when there was some concern that the US Treasury could reverse the exemption.
Full text of the exemption from US Treasury here