Treasury Proposes FX Swap and Forward Exemption
Client Memorandum

Created date


On April 29, 2011, the United States Department of the Treasury issued a proposed determination that would exempt foreign exchange (“FX”) swaps and forwards from the definition of “swap” for most Dodd-Frank purposes, including registration, clearing and trade execution. In proposing this determination, the Treasury Secretary is acting pursuant to the authority contained in Section 721 of Dodd-Frank to make such a determination if he finds that FX swaps and forwards should not be regulated as swaps and are not structured to evade the Dodd-Frank Act. FX swaps and forwards will be subject to swap data repository trade reporting requirements but will not be subject to “real-time” trade reporting requirements. For swap dealers and major swap participants, business conduct standards will also apply.