Covered Transaction
(c) Covered Transaction. The term Covered Transaction means a swap, as defined in section 1a(47) of the Act and 1.3 of this chapter (other than swaps subject to the clearing requirement of section 2(h)(1)(A) of the Act and part 50 of this chapter), and physically-settled foreign exchange forwards and swaps that have been exempted from the definition of swap by the U.S. Department of the Treasury.