U.S. Treasury Proposal Excludes Certain Foreign Exchange Derivatives from “Swap” Definition

more+
less-

Pursuant to authority granted to it under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the U.S. Treasury Department has proposed excluding foreign exchange swaps and forwards from the definition of a "swap" under the Commodity Exchange Act (“CEA”).

In its notice, Treasury stresses that the definitions of foreign exchange swap and foreign exchange forward in the CEA are quite narrow. The following types of currency derivatives are covered by the exclusion:

• “Foreign exchange forwards,” which involve the physical exchange of two different currencies at a fixed rate on a fixed future date; and

• “Foreign exchange swaps,” which involve a physical exchange of two different currencies at a fixed rate on a fixed date, followed by a reverse exchange of these two currencies at a fixed rate at a later date.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ropes & Gray LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×