US Treasury issues Dodd-Frank exemption for forex swaps, forwards

WASHINGTON Fri Nov 16, 2012 5:34pm EST

WASHINGTON Nov 16 (Reuters) - Foreign exchange swaps and forwards, which make up a large portion of the over-the-counter derivatives market, will not be subjected to certain costly new rules associated with the Dodd-Frank reform law, the U.S. Treasury Department said on Friday.

Treasury, in justifying the exemption, said those products already have systems in place to help reduce market risk.

Forex swaps and forwards will still, however, face reporting and business conduct requirements.