Overseas Private Investment Corporation Investment Funds Program
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Even if an entity otherwise holds a “substantial
position” in swaps, it would not qualify as a major swap
participant if those positions are held for “hedging or
mitigating commercial risk,” among other exceptions.
20
However, the proposed defi nition of “hedging or mitigat-
ing commercial risk” would exclude swap positions held
for speculative purposes.
21 As most private funds would
presumably be deemed to be holding their swap positions
for speculative purposes, that exclusion is unlikely to
apply to them. However, depending on the fi nal defi ni-
tions of “substantial position” and “substantial counter-
party exposure,” it is likely that only very...
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Overseas Private Investment Corporation Investment Funds Program
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Overseas Private Investment Corporation Investment Funds Program
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