Private funds,1 commodity pools and other “Category 2 Entities” (as defined by the CFTC) are required to clear certain index credit default swaps and interest rate swaps beginning on June 10, 2013. Funds may need to enter into new documentation in order to engage in swaps that are subject to mandatory clearing after this date. A fund that engages in these swaps and has not yet entered into such documentation should contact its counterparties as soon as possible. If you have any questions concerning the foregoing, please contact your primary attorney in Seward & Kissel’s Investment Management Group.
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1 A private fund is a fund that would be an investment company, as defined in section 3 of the Investment Company Act of 1940, as amended, but for section 3(c)(1) or 3(c)(7) of that Act.
