Mandatory Clearing For Category 3 Entities Approaches

A quick reminder that the CFTC’s mandatory clearing requirement for interest rate swaps and credit default swaps when entered into by non-financial commercial end users (Category 3 Entities) will begin on 9 September 2013.  Many major businesses and most public companies are included within the definition of Category 3 Entities.  The Commission’s clearing requirement does not however apply to those market participants who are eligible for and elect an exception from clearing because they use derivatives for commercial hedging purposes.