Bilateral Contracts

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Bilateral Contracts refers to swaps that will remain Over-The-Counter and not be submitted to a swaps clearinghouse.

The contract will maintain all of the features such a counterparty credit risk and documentation as derivative contracts prior to the credit crisis.

There are a few areas where the OTC swap contracts have been changed such as standardization of documentation and the collection of initial margin.

Corporations, Inter-affiliate swaps, FX Swaps (not cross currency) will remain OTC and handled as they always have.

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