FX swaps and forwards exempted from clearing, exchange-trading requirements

FX swaps and forwards will not be subject to new derivatives requirements, including central clearing and exchange trading, under a final determination issued by the Treasury Department. Dodd-Frank gave the Treasury authority to determine whether certain swaps requirements should apply to FX swaps and forwards. Some commenters argued that the proposed exemption would create a loophole that could serve to undermine financial stability. Read on to learn why the Treasury ultimately decided to exempt FX swaps and forwards from certain Dodd-Frank requirements.