CFTC Extends Reporting Relief for Certain Swap Dealers

The relevant rule concerns non-U.S. swap dealers and major swap participants established in foreign jurisdictions.

The requirement looming next week for certain CFTC-registered swap dealers (SD) and major swap participants (MSP) has prompted the U.S. Commodity Futures Trading Commission (CFTC) to issue a time-limited no-action letter today that extends temporary relief from certain swap reporting requirements.

According to a no-action letter issued by CFTC’s Division of Market Oversight, all swap dealers and major swap participants will now have until December 1, 2017, to comply with an agency rule requiring them to follow the swap data reporting requirements of Part 45 and Part 46 of the CFTC’s regulations, with respect to its swaps with non-U.S. counterparties that are not guaranteed affiliates, or conduit affiliates, of a U.S. person.

The relevant rule concerns non-U.S. swap dealers and major swap participants established in Australia, Canada, the European Union, Japan or Switzerland, that are not part of an affiliated group in which the ultimate parent entity is a U.S. swap dealer, major swap participant, bank, financial holding company, or bank holding company.

Absent an extension, the no-action relief would have ended 30 days after the issuance of a comparability determination with respect to the SDR Reporting Rules for the jurisdiction in which a non-U.S. SD or non-U.S. MSP is established.

Pursuant to the no-action letter, the DMO staff won’t recommend the CFTC to take any enforcement action against a swap dealer or major swap participant for failure to comply with the requirements.

The reporting requirements, and certain related recordkeeping obligations, are found in two parts of the CFTC’s regulations: Part 45 which is related to reporting for equity swaps, foreign exchange swaps, and other commodity swaps; Part 46 – reporting for all historical swaps.

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