Examples of Qualifying Amendment in a sentence
GRANT OF NO-ACTION RELIEF AND APPLICABLE CONDITIONS For purposes of the DCR no-action positions set forth below, the amendment of an Uncleared Legacy IRS or Uncleared Legacy Swaption that solely consists of (1) a Qualifying IRR Amendment; (2) a Qualifying Swaption Amendment; (3) a Qualifying CSA Amendment; or(4) any combination of the foregoing is referred to as a Qualifying Amendment.
For example, a foreign central bank entering into a Qualifying Amendment for swaps with its swap dealer counterparty is unlikely to require the relief offered in this letter because the Commission has recognized that the swaps entered into by central banks are not be subject to the Clearing Requirement in keeping with considerations of comity and the traditions of the international system.
DCR expects that the Covered IRS documentation and any related commercial agreement documentation will be amended as soon as commercially practicable after the Qualifying Amendment is made so that the documentation again reflects that the Covered IRS qualifies as a swap used to hedge or mitigate the commercial risk of an Eligible End-User pursuant to Commission regulation 50.50(c), 50.51(b)(2), or applicable condition in a prior DCR staff letter.
Accordingly, DSIO will not recommend that the Commission take an enforcement action against an SD for a failure to comply with the CFTC Margin Rule solely to the extent such compliance would be required as a consequence of a Qualifying Amendment to a CFTC Margin Rule Legacy Swap.
Accordingly, until December 31, 2021, DCR will not recommend that the Commission take an enforcement action against any person for a failure to comply with the IRS Clearing Requirement under section 2(h)(1)(A) of the CEA and Commission regulations50.2 and 50.4(a) when such person makes a Qualifying Amendment to an Uncleared Legacy IRS or Uncleared Legacy Swaption, provided that such an amendment is made for the sole purpose of transitioning from an IRR to an alternative reference rate.