CFTC staff provides relief associated with swap trade confirmations


The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued a no-action letter extending relief associated with swap trade confirmation requirements that previously was provided in CFTC Staff Letter 16-25, which expires March 31, 2017.

The letter extends the relief until the effective date of any revised CFTC regulations regarding trade confirmation requirements. The relief is subject to terms and conditions in the letter.

The letter relieves swap execution facilities (SEFs) from the requirement in CFTC Regulation 37.6 that a SEF obtain documents that are incorporated by reference in a trade confirmation issued by a SEF, prior to issuing the confirmation. SEFs are also relieved from the requirement in CFTC Regulations 37.1000, 37.1001 and 45.2(a) that a SEF maintain such documents as records. Finally, SEFs are relieved from the requirement in CFTC Regulation 45.3(a) that a SEF report confirmation data that is only contained in the documents that the SEF incorporates by reference in a confirmation.

In addition, DMO will not recommend that the CFTC take enforcement action if:

  1. In a confirmation provided pursuant to CFTC Regulation 37.6(b), a SEF incorporates by reference terms from previously-negotiated agreements between the counterparties, without first having obtained copies of such agreements;
  2. A SEF fails to maintain a copy of the agreements incorporated by reference in the SEF’s confirmation, as required under CFTC Regulations 37.1000, 37.1001 and 45.2(a); or
  3. A SEF does not report confirmation data contained in the documents that a SEF incorporates by reference in a confirmation, as required under CFTC Regulation 45.3(a).

This relief requires that a SEF continue to report all swap data that the SEF is reporting as of the time this no-action relief is issued, as required by part 45 of the CFTC’s regulations, even if such data are contained in the documents that the SEF incorporates by reference in a confirmation.

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CFTC staff provides relief associated with swap trade confirmations

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