Swaps Among Bank Affiliates Exempt From Clearing Under CFTC Rule

Barclays Plc (BARC), JPMorgan Chase & Co. (JPM) and other banks will be exempt from Dodd-Frank Act swap market rules when trading between their own affiliates under a measure completed by the U.S. Commodity Futures Trading Commission.
Commissioners approved a rule excluding inter-affiliate trades from requirements that swaps be guaranteed at clearinghouses that protect buyers and sellers against defaults, the CFTC said yesterday. The rule is part of the CFTC’s mandate to cut risk and expand transparency in the $639 trillion global swaps market.

Source: Bloomberg