The Treasury Department is now proceeding to exempt certain foreign-exchange derivatives from the central-clearing rules that would otherwise apply under the Dodd-Frank Act, building on the general request for initial views released last year. Treasury has made a preliminary determination to provide such an exemption, which is strongly advocated by the foreign-exchange (forex) industry and U.S. firms active in international trade. The exemption would mean that forex swaps and forwards (but not other forex instruments) would be exempted from the central clearing-and-exchange requirements of the Dodd-Frank Act (but not its other new standards governing OTC derivatives).
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