April 15, 2014

Commodity Futures Trading Commission ("CFTC") Grants No-Action Relief for End Users from Swap Reporting Requirements

On April 9, 2013, the Division of Market Oversight of the U.S. Commodity Futures Trading Commission ("CFTC") issued a no-action letter delaying the swap reporting compliance deadlines for end users and other swap counterparties that are not swap dealers or major swap participants ("non-SD/MSP counterparties"). The relief provided to market participants is effective immediately.

The CFTC had issued regulations setting forth various reporting requirements for swap transactions (Part 43 — real-time reporting for swap transactions, Part 45 — transactional data reporting to a registered swap data repository and Part 46 — historical swap data reporting) of the CFTC's regulations. The rules had established a deadline of April 10, 2013 for swap counterparties that are not swap dealers or major swap participants ("non SD/MSP counterparties"). Citing implementation concerns involving technological and operational capabilities, a number of market participants requested that the Division of Market Oversight provide a six-month extension of the compliance deadline. The CFTC's April 9 no-action letter does not grant the full six-month extension requested, but provides certain time-limited no-action relief to nonSD/MSP swap counterparties as described below.

1. No-Action Relief for Reporting of Interest Rate and Credit Swaps
The letter extends no-action relief for end users' interest and credit swaps reporting until July 1, 2013. However, non SD/MSP swap counterparties that are "financial entities", as defined in Section 2(h)(7)(C), must comply with reporting requirements under Part 43 and 45 on April 10, 2013.

2. No-Action Relief for Reporting of Equity, Foreign Exchange and Other Commodity Swaps
The no-action relief for end users who engage in swaps in other asset classes (e.g., equity, foreign exchange, and other commodities) is extended until August 19, 2013. For non-SD/MSP swap counterparties that are "financial entities," as defined in Section 2(h)(7)(C), the no-action relief extends until May 29, 2013.

3. No Action Relief for Historical Swap Data Reporting Under Part 46
The letter also extends no-action relief to end users' Part 46 historical swap data reporting for all swap asset classes until October 31, 2013.For non SD/MSP swap counterparties that are "financial entities," as defined in Section 2(h)(7)(C), the Part 46 no-action relief extends untilSeptember 30, 2013. Any pre-enactment or transition swap entered into prior to 12:01 a.m. on April 10, 2013 is reportable as a historical swap.

4. Compliance Date for Recordkeeping Obligations has not been Extended
The letter also confirms that the no-action relief provided for reporting requirements does not impact any Dodd-Frank-related recordkeeping obligations applicable to SDs, MSPs or end users. Thus, for historical swaps, end users must maintain records under the Part 46 rules for any such swaps entered into prior to April 10, 2013. With respect to swaps entered into on or after April 10, end users must maintain records under the Part 43 and 45 rules, and obtain a CFTC Interim Compliant Identifier for this purpose by April 10, 2013.

© 2014 Schiff Hardin LLP

About the Author


Laura Chipkin focuses her practice on a variety of matters before the Federal Energy Regulatory Commission (FERC) on behalf of electric utilities and natural gas companies. Representing both investor-owned utilities and electric cooperatives, Ms. Chipkin advises clients on compliance matters, wholesale power contracts, ratemaking proceedings, market-based rates and market power analyses, and open-access transmission tariffs.


About the Author

Staff Attorney

Noy S. Davis focuses on energy and public utilities law litigation and transactions.


Boost: AJAX core statistics

Legal Disclaimer

You are responsible for reading, understanding and agreeing to the National Law Review's (NLR’s) and the National Law Forum LLC's  Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.  

Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is  intended to be  a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional.  NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 

Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.

The National Law Review - National Law Forum LLC 4700 Gilbert Ave. Suite 47 #230 Western Springs, IL 60558  Telephone  (708) 357-3317 If you would ike to contact us via email please click here.