The Dodd-Frank Act requires most swaps to be traded on an exchange or on a similar system and then guaranteed by a clearinghouse, where the parties would be required to post collateral. However, the act allows the Secretary of the Treasury to make a final determination as to whether foreign exchange transactions should be granted an exemption from the Dodd-Frank definition of swaps.

On November 16,the U. Department of the Treasury issued it final determination that effectively exempts FX swaps and forwards from mandatory derivatives requirements, including central clearing and exchange trading.

US Secretary of the Treasury exempts FX swaps and forwards from certain requirements under the US Commodity Exchange Act - Lexology

The final determination does not extend to other FX derivatives: These other derivative instruments will still be subject to mandatory clearing as well as the requirement that they be traded on either a designated contract market DCM or a swap execution facility SEF.

Additional requirements for off-exchange retail forex transactions were addressed in a previous CFTC ruling on September 10, Title VII of the Dodd-Frank Act includes Foreign Exchange Swaps and Forward Contracts in its definition of swaps under the Commodity Exchange Act. However, the Act allows the Secretary of the Treasury to determine whether to allow an exemption for such contracts. On October 29,the Department of the Treasury issued a notice and request for comments regarding the proposed exemption.

The notice included a list of questions regarding, among other things:.

On April 29,the Treasury Department issued its online currency trading forex book online stock trading11 of proposed determination of foreign exchange swaps and forwards. The proposed determination entered the Federal Register on May 5, The deadline for public comment was June 6, According to the Treasury Departmentthe foreign exchange swap and forward exemption was based on several factors, including:.

FX Swaps Regulation From MarketsReformWiki. Must specify an image in the first line. Dodd-Frank Timeline, FX Swaps Exception to Swaps Regulation, Treasury Department Proposal Date Comment Deadline Proposed Determination Final Determination October 28, November 29, April 29, November 16, investment property pros and cons Click Here To Explore Other Topics. FX Swaps Regulation - Comment Letters.

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Fact Sheet: Final Determination on Foreign Exchange Swaps and Forwards

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Rolling Spot Forex A Swap?

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