United States Agencies Tender

Five federal agencies acted to ensure that qualifying swaps may be transferred from a United Kingdom UK entity to an affiliate in the European Union EU or the United States without triggering new margin requirements. The action is in response to the possibility of a non-negotiated withdrawal of the UK from the EU. This action applies to legacy swaps that were entered into before applicable regulatory margin requirements took effect and is generally consistent with similar relief contemplated by international jurisdictions.The interim final rule adopted would ensure that any legacy swap currently exempt from the agencies rule on margin for non-cleared swaps would not become subject to the rule if such swap is amended solely for the purpose of transferring it to an affiliate as a result of a non-negotiated UK withdrawal from the EU.Although the interim final rule is effective immediately the agencies are accepting comments on the rule for 30 days after publication in the Federal Register.