NCUA REQUEST FOR COMMENT: NCUA Requests Comment – Derivatives Activity
The NCUA is proposing to allow credit unions (federal and federally insured state chartered) to engage in limited derivative transactions for the purpose of mitigating interest rate risk. The proposed rule requires eligible credit unions to apply to the NCUA or state Department of Insurance and Financial Services for either a Level I or Level II derivatives authority. These levels will differ on permissible levels of transactions as well as the application, expertise and system requirements.
The proposal and request for comment can be found here.