Swap Cooperatives Breathe Easy (again)

19 July 2013. In a press release typical for its constant reincarnation, the CFTC’s DCR issued it’s fifth extension of “time-limited” relief with respect to swaps clearing by cooperatives. In summary, if one of the counterparties to a swap is a cooperative, whose members (or one of them) are non-financial entities, and the swap is entered into in connection with an originating loan to said cooperative; the swap will be exempt from clearing requirements until expiry relief on 16th August 2013, unless a final exemptive rulemaking intervenes.