The Division of Clearing and Risk of the Commodity Futures Trading Commission announced that commodity pools, private funds (other than active funds) and certain other persons predominantly engaged in banking or financial activities (Category 2 Entities) must clear iTraxx credit default swap (CDS) indices required to be cleared under Section 2(h) of the Commodity Exchange Act and CFTC Regulations 50.2 and 50.4(b) beginning on July 25. Swap dealers, security-based swap dealers, major swap participants, major security-based swap participants and active funds (Category 1 Entities) have been required to comply with the clearing requirements for iTraxx CDS indices since April 26. All other entities not characterized as Category 1 Entities and Category 2 Entities must comply with such clearing requirements beginning October 23.
More information is available here.
