CFTC Extends Relief on Use of New Large-trader OCR Data Reporting Forms | Practical Law

CFTC Extends Relief on Use of New Large-trader OCR Data Reporting Forms | Practical Law

The CFTC further extended no-action relief from requirements to use certain new ownership and control (OCR) large-trader data reporting forms under Parts 17, 18, and 20 of the CFTC’s regulations.

CFTC Extends Relief on Use of New Large-trader OCR Data Reporting Forms

Practical Law Legal Update w-000-6206 (Approx. 4 pages)

CFTC Extends Relief on Use of New Large-trader OCR Data Reporting Forms

by Practical Law Finance
Published on 30 Sep 2015 • USA (National/Federal)
The CFTC further extended no-action relief from requirements to use certain new ownership and control (OCR) large-trader data reporting forms under Parts 17, 18, and 20 of the CFTC’s regulations.
On September 28, 2015, the CFTC issued No-action Letter No. 15-52 (No-action 15-52), further extending no-action relief from requirements to use certain new ownership and control (OCR) large-trader data reporting forms under Parts 17, 18, and 20 of the CFTC’s regulations. Many of these requirements, implemented as part of the CFTC’s Ownership and Control Final Rule (OCR final rule), were scheduled to take effect on September 30, 2015 (see Legal Update, CFTC Reminder: Upcoming Large-trader Ownership and Control (OCR) Reporting Deadlines).
The OCR final rule requires electronic reporting of trading identification and market participant data on new or updated forms designed to assist the CFTC with identification of participants in the futures and swaps markets (see Legal Update, CFTC Proposes Rules on Large-trader Ownership and Control Forms).
No-action 15-52 extends the relief previously granted in No-action Letter No. 14-95 and No-action Letter No. 15-03, by granting market participants relief from the obligation to file reports on:
  • New Form 102A, New Form 102B (with respect to DCM volume threshold accounts) and New Form 102S, until April 27, 2016.
  • New Form 40/40S and New Form 71, until September 28. 2016.
  • New Form 102B (with respect to SEF volume threshold accounts), until February 13, 2017.
The relief is contingent on certain conditions, including:
  • Reporting parties continuing to report under requirements that were in place before the OCR final rule, by reporting to the CFTC on Legacy Form 102, Legacy 102S filings, Legacy Form 40 and Legacy Form 40S.
  • Special procedures related to Legacy Form 102 include:
    • Submitting Legal Form 012 within three business days of when a special account is reported to the CFTC, including the required information in paragraphs (a) through (f) of Appendix A to No-Action 15-52.
    • Identifying, upon request by the CFTC, the type of special account (in items 1(a), 1(b) or 1(c)) as well as the name of the individual specified in 1(d) on the same day that special account is reported to the CFTC.
    • Submitting and changes to the CFTC within three business days
    • Reporting markets that exclusively list self-cleared contracts via Legacy Form 102, absent special permission by the CFTC
  • Special procedures related to Legacy 102S filings include:
    • Submitting a Legacy 102S filing within three days after a counterparty consolidated account first becomes reportable.
    • Submitting a Legacy 102 filing for each counterparty even if such counterparty would hold multiple positions in the same or different paired swaps or swaptions.
  • Special procedures related to Legacy Form 40 include:
    • Submitting Legacy Form 40 upon special call from the CFTC
    • Following the procedures set out in Appendix B to No-Action 15-52.
  • Cooperation with the CFTC's Office of Data and Technology to provide test submissions of "Production Grade" data in advance of OCR final rule implementation.
For further details on the CFTC large-trader reporting rules and a detailed discussion of OCR issues, see this helpful Sidley Austin memo.