April 14, 2021

Volume XI, Number 104

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CFTC Staff Extends Existing Brexit-Related Relief to Provide Market Certainty & Temporary Relief to DTCC Data Repository LLC and Related Entities from Reporting Requirements

CFTC Staff Extends Existing Brexit-Related Relief to Provide Market Certainty

On November 24, the Commodity Futures Trading Commission’s (CFTC) Market Participants Division (MPD) and Division of Market Oversight (DMO) announced an extension of two previously granted no-action letters to provide greater certainty to the global marketplace in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU). CTFC Staff Letter 20-39 stipulates that MPD and DMO will provide temporary relief to ensure the continued availability of substituted compliance and regulatory relief under CFTC comparability determinations and exemptive orders the CFTC originally issued for EU entities. CTFC Staff Letter 20-40 ensures the omnibus relief provided by MPD to EU entities in certain staff letters continues to be available for UK entities following the end of the transition period.

The press release is available here.

CTFC Staff Letter 20-39 is available here.

CTFC Staff Letter 20-40 is available here.

CFTC Staff Grants Temporary Relief to DTCC Data Repository LLC and Related Entities from Reporting Requirements

On November 24, the Commodity Futures Trading Commission’s (CFTC) Division of Data (DOD) granted temporary no-action relief to DTCC Data Repository LLC (DDR) from certain requirements of the swaps data repository (SDR) rules in Part 49 of the CFTC’s regulations. DDR requested relief because it planned to implement revisions to its infrastructure and applications consistent with recent amendments to the CFTC’s reporting rules prior to the effective date of such rules. The relief stipulates that DOD will not recommend the CFTC take an enforcement action against DDR for:

  1. failure to accept and promptly record certain swaps and swap data fields as required by CFTC Regulation 49.10(a); or

  2. failure to confirm the accuracy of data by notifying both swap counterparties as required by CFTC Regulation 49.9(a)(2) and Part 49.11(a) and (b).

The relief also states that DOD will not recommend that the CFTC take an enforcement action against a registered entity or swap counterparty reporting swaps data to DDR for failure to report certain swap data fields as required by the swaps data reporting rules in Parts 45 and 46 of the CFTC’s regulations.

This temporary relief expires 60 days following publication of the SDR and swaps data reporting final rules in the Federal Register. The final rules were published in the Federal Register on November 25.

The press release is available here.

CTFC Staff Letter 20-38 is available here.

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©2021 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 339
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About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm
Partner

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.

...

312-902-5372
Jack West Financial Attorney Katten
Associate

Jack West is an associate in the Financial Markets and Funds practice.

312-902-5463
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