The Commodity Futures Trading Commission (CFTC) has adopted a final rule that establishes two exemptions from the requirement to execute certain swaps on regulated trading platforms. Swaps that qualify for clearing exemptions under existing regulations can now also be exempt from this execution requirement. Additionally, swaps made between eligible affiliate counterparties can be exempted from being executed on these platforms, even if these swaps are cleared. This rule aims to reduce unnecessary costs and enhance flexibility for specific types of swap transactions.
Simple Explanation
The Commodity Futures Trading Commission has made a new rule that says some special swaps (which are like trading agreements) don't have to follow certain trading rules if they are between certain related parties or if they already have other exceptions. This helps save money and gives more options for those special trades.