Products in the "Customer Cleared Swaps" Regulatory Class

Effective on Monday, November 5, 2012, and pursuant to CFTC regulations, CME's "Cleared OTC Customer Sequestered" regulatory class will be replaced by a new class, called "Customer Cleared Swaps."  There are various regulations which will apply to these products, especially Legally Segregated Operationally Commingled ("LSOC").

The set of CME-cleared products which when held by customers of FCM's falls into the Cleared OTC Customer Sequestered regulatory class, is precisely the same which will be in the new Customer Cleared Swaps class on November 5.  It consists of the following:

• All Interest Rate Swaps
• All Credit Default Swaps
• All FX Non-Deliverable Forwards and Cash-Settled Forwards as enumerated below
• Metal Forwards and seventeen commodity and energy swaps as enumerated below

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For the complete text of the advisory, click here