Washington, DC — Today, the U.S. Commodity Futures Trading Commission’s (CFTC or Commission) Divisions of Swap Dealer and Intermediary Oversight (DSIO), Clearing and Risk, and Market Oversight (collectively Divisions) issued a time-limited no-action letter that extends relief to swap dealers (SDs) registered with the Commission 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.
On November 14, 2013, DSIO issued an Advisory (DSIO Advisory) in response to inquiries from swap market participants regarding the applicability of the Commission’s Transaction-Level Requirements in certain situations. Subsequent to the issuance of the DSIO Advisory, concerns were raised by certain Non-U.S. SDs regarding compliance with the Transaction-Level Requirements, who represented that, in order to avoid market disruption for their non-U.S. counterparties, additional time would be necessary to come into compliance. The CFTC has requested public comment regarding compliance issues implicated by the DSIO Advisory. In view of the foregoing, the Divisions are hereby extending the date of the time-limited staff no-action relief provided in CFTC Letter No. 13-71.
The letter issued by the Divisions today will provide no-action relief to Non-U.S. SDs until September 15, 2014, subject to the limitations set forth in the letter.