CFTC Extends Temporary Swap Data Reporting Relief for Certain International Swap Dealers and Major Swap Participants
Friday, November 20, 2020

On November 19, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) issued a staff letter extending no-action relief to certain CFTC-registered swap dealers (SDs) and major swap participants (MSPs). The no-action relief, which was initially granted in 2013 and subsequently extended several times, was set to expire on December 1.

Under the terms of CFTC Letter No. 20-37, DMO confirms that it will not recommend that the CFTC take an enforcement action against a non-US SD or a non-US MSP for failure to comply with the swap data reporting requirements in Part 45 and Part 46 of the CFTC’s regulations, provided:

  • the swaps are with non-US counterparties that are not guaranteed affiliates, or conduit affiliates, of a US person;

  • the entity is established in Australia, Canada, the European Union, Japan, Switzerland, or the United Kingdom; and

  • the entity is not part of an affiliated group in which the ultimate parent entity is a US SD, US MSP, US bank, US financial holding company, or US bank holding company.

The no-action relief is time-limited and will expire on the earlier of December 1, 2022 or 30 days following the issuance of a CFTC comparability determination on swap data reporting rules for the jurisdiction in which the non-US SD or non-US MSP is established.

CFTC Letter No. 20-37 is available here.

 

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