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CFTC Extends Relief From Transaction-Level Requirements for Non-US Swap Dealers

The Division of Swap Dealer and Intermediary Oversight, the Division of Clearing and Risk and the Division of Market Oversight (collectively, the Divisions) of the Commodity Futures Trading Commission have extended relief previously provided in a series of previous no-action letters relating to transaction-level requirements for non-US swap dealers (non-US SDs). Specifically, the Divisions have granted relief to non-US SDs from certain specified “transaction-level requirements” when using personnel or agents located in the United States to arrange, negotiate or execute swaps with non-US persons that are not guaranteed affiliates or conduit affiliates of a US person.

For these purposes, “transaction-level requirements” include the requirements set forth in CFTC Regulations 23.202, 23.205, 23.400 to 23.451, 23.501, 23.502, 23.505, 23.506, 23.610, 23.701 to 23.704, and Parts 37, 38, 43 and 50. To the extent that the counterparty is not a CFTC-registered swap dealer, the “transaction-level requirements” also include the requirements set forth in CFTC Regulations 23.503 and 23.504.

The relief will remain in place until the effective date of any CFTC rule or other formal action addressing whether a particular transaction-level requirement is or is not applicable to any of the transactions described above.

©2019 Katten Muchin Rosenman LLP


About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.


James M. Brady, Katten Muchin Law Firm, Finance Attorney

James Brady concentrates his practice in financial services matters.

While in law school, James was an editor of the Michigan Journal of International Law. He also served as a judicial intern to the Honorable Stephen J. Markman of the Michigan Supreme Court. http://www.kattenlaw.com/James-Brady