Practice Update: IRS Expands the Safe-Harbor for Swap Assignments to Accommodate Dodd-Frank Implementation
Author: Mark H. Leeds.
Source: Volume 29, Number 01, Fall 2011 , pp.47-50(4)
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Abstract:
A new Temporary Treasury Regulation, issued in late July 2011, significantly expands the safe-harbor rules that apply to prevent gain or loss recognition for nonassigning parties to overthecounter derivatives when a dealer counterparty assigns its position to another dealer. The temporary regulation addresses four areas of concern to parties to notional principal contracts and, now, other derivatives.Keywords: swaps; assignments; notional principal contracts; gain recognition; derivatives
Affiliations:
1: Greenberg Traurig.