On July 10, the Commodity Futures Trading Commission (CFTC), the primary federal regulator of derivatives, adopted a final rule to provide an exception for banks and credit unions with $10 billion or less in assets from swap-clearing requirements mandated by the Dodd-Frank Act. While few credit unions currently participate in swaps, the rule could have affected National Credit Union Administration's (NCUA) efforts to consider hedging for interest rate risk mitigation. Credit Union National Association (CUNA) weighed in with the CFTC on this rule and is pleased with the final rule, which is consistent with the position advocated for in our 2011 comment letter to the CFTC.
However, CUNA expressed concern to the CFTC that all credit unions should be exempt from its rule. At its meeting this week, the CFTC also issued a proposal to exempt cooperatives that have assets over $10 billion. CUNA will be working to ensure this would include credit unions, which staff indicated was the agency's intent. Once the proposed rule is released, CUNA will be reviewing it in detail and filing a comment letter with the CFTC.