November 17, 2020
Talking Shop: Applying the End-User Exception From Dodd-Frank’s Swap Clearing Mandate
Context: In 2013, section 723 of The Dodd-Frank Act went into effect, which required all commercial end users of swaps to submit the swap to a derivatives clearing organization. A so-called “end-user exception” allows parties to claim exemption from the clearing mandate and continue executing uncleared swaps with their dealer counterparties if one of them: Is not a financial entity.Is using the swap to hedge or mitigate commercial risk.Provides certain information to the CFTC, including how it generally meets its…