Comment Letter on End-User Exception to Mandatory Clearing of Swaps and Security-Based Swaps

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The ABA provided additional comments to the CFTC and SEC about how end-user banks with limited swaps activities and use swaps solely to hedge or mitigate risk would be affected if one of their counterparties ceased conducting business. The letter describes existing bank risk management practices and comprehensive regulation, including legal lending limits. The CFTC final rule provides a clearing exemption for banks and savings associations with $10 billion or less in total assets.

Learn more:

ABA Comment Letter

Final Rule on End-User Exception