CFTC extends time-limited no-action relief on the applicability of transaction-level requirements

CFTC offices

The U.S. Commodity Futures Trading Commission’s (CFTC) Divisions of Swap Dealer and Intermediary Oversight (DSIO), Clearing and Risk, and Market Oversight (Divisions) has issued a time-limited no-action letter that extends relief to swap dealers (SDs) registered with the CFTC that are established under the laws of jurisdictions other than the United States (Non-U.S. SDs) from certain transaction-level requirements under the Commodity Exchange Act.

Subject to the limitations stated in the letter, the relief is tied to the effective date of Commission action addressing whether or not a particular transaction-level requirement is applicable to certain swaps between Non-U.S. SDs and non-U.S. counterparties. The relief was necessitated by compliance issues raised by an advisory issued by DSIO on November 14, 2013 (DSIO Advisory). The DSIO Advisory was issued in response to inquiries from swap market participants regarding the applicability of the CFTC’s transaction-level requirements in certain situations.

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