The CFTC has extended relief to swap dealers registered with the CFTC 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.
Click here for the Press Release.
Click here or see attached for the No-Action Letter.
Previously, on November 14, 2013, the Division of Swap Dealer and Intermediary Oversight (DSIO) issued an advisory regarding the applicability of the CFTC’s transaction-level requirements with respect to swaps between a Non-U.S. SD (whether an affiliate or not of a U.S. person) and a non-U.S. person if the swap is arranged, negotiated, or executed by personnel or agents of the Non-U.S. SD located in the United States. Certain Non-U.S. SDs subsequently raised concerns regarding compliance with the transaction-level requirements. In response, DSIO issued a letter granting time-limited no-action relief to certain Non-U.S. SDs until January 14, 2014, which relief the CFTC Staff extended to September 15, 2014. In anticipation of the expiration of that relief, on June 4, 2014, DSIO issued a second letter extending that no-action relief, which was set to expire on December 31, 2014.
Today’s no-action provides that the relief will now expire on the earlier of: (1) September 30, 2015, and (2) the effective date of any CFTC action with respect to the subjects addressed by the CFTC.