Swaps End-User Update: Annual End-User Clearing Exception Form

Annual End-User Clearing Exception Form

August 9, 2013

As most end-users already know, when electing the end-user exception to mandatory clearing of swaps, certain information regarding that election must be reported to a swap data repository (SDR). While notice of the election and the identity of the party making the election must be reported (by the reporting counterparty for the swap) on a trade-by-trade basis, other information regarding the election of the end-user exception can be reported annually to an SDR. The Depository Trust & Clearing Corporation (DTCC) Data Repository has now posted instructions on its website for making an annual filing for the end-user clearing exception, which can be found here.

End-users who adhered to the ISDA March 2013 DF Protocol elected to either make, or not make, an annual filing regarding the end-user clearing exception. For an end-user that opted: 

  • To make an annual filing, DTCC’s instructions should be helpful in making that filing; or
  • Not to make an annual filing, DTCC’s instructions may be helpful in reevaluating whether the annual filing might be a better/easier option for satisfying this reporting obligation. One advantage of the annual filing is that information can be updated to reflect any changes, including, for example, regarding how the company generally meets its financial obligations for noncleared swaps.

DTCC will notify an end-user when the next annual clearing exception form is due.

Please contact one of the authors, or your regular McGuireWoods lawyer, if you have any questions regarding the end-user swap clearing exception.