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Introduction to the Commercial End-User Exception to Mandatory Clearing of Swaps and Security-Based Swaps Under Title VII of the Dodd-Frank Act

Date: March 2016
Corporate Alert
By: Anthony R.G. Nolan, Lisa R. Stark, Rachel M. Proctor, Lawrence B. Patent

This article was first published in the Lexis Practice Advisor in March 2016.

This practice note (i) provides an introduction to the commercial end-user exception to clearing of swaps and security-based swaps (the “Commercial End-User Exception”), (ii) explains the scope and basic requirements of the Commercial End-User Exception, (iii) provides considerations for commercial and manufacturing companies in determining whether to elect the Commercial End-User Exception, (iv) addresses corporate governance considerations implicated by the decision whether to use the Commercial End-User Exception, and (v) addresses disclosure implications of the Commercial End-User Exceptions for Securities and Exchange Commission (“SEC”) registrants.

For the reasons described in this alert, this practice note will focus principally on the application of the Commercial End-User Exception to swaps rather than security-based swaps. See “Introduction to the United States Regulation of Swaps and Security-Based Swaps Under Title VII of the Dodd-Frank Act” for more information on distinguishing between swaps and security-based swaps.

Click here to read the full alert.

This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Any views expressed herein are those of the author(s) and not necessarily those of the law firm's clients.

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