Dodd-Frank represents a paradigm shift in the financial regulatory environment, introducing the most sweeping changes to financial regulation in the United States since the 1930s. Title VII of Dodd-Frank imposes comprehensive regulation on the derivatives market. A major component of the new regulation involves the creation of a centralized clearing framework for derivative transactions. In this memorandum, Richards Kibbe & Orbe LLP partner Julia Lu explores the ramifications of the new clearing regime on participants in the derivatives marketplace.