The Commodity Futures Trading Commission’s Market Participants Division and Division of Clearing and Risk issued an interpretive letter on how an internal reorganization merger at Morgan Stanley, a CFTC-registered swap dealer, affects the regulatory treatment of legacy swaps. Based on the facts and circumstances described, staff concluded the swaps covered by the letter retain their legacy swap status under the CFTC’s uncleared swap margin and swap clearing requirements. Market Participants Division staff determined that Morgan Stanley’s legacy swaps remain exempt from the CFTC’s uncleared swap margin requirements for counterparties subject to those requirements. Division of Clearing and Risk staff determined the merger does not cause the legacy swaps to lose legacy status for purposes of the CFTC’s swap clearing requirement.
Commodity Futures Trading Commission 2026-02-02
US Commodity Futures Trading Commission staff confirm Morgan Stanley internal merger does not affect legacy swap status for margin and clearing
The Commodity Futures Trading Commission's Market Participants Division and Division of Clearing and Risk issued an interpretive letter confirming that an internal reorganization merger at Morgan Stanley does not alter the regulatory treatment of its legacy swaps, which retain their status under the CFTC's uncleared swap margin and swap clearing requirements.