CFTC Issues Third Extension of Relief for Foreign Swap Dealers from Dodd-Frank Swap Data Reporting | Practical Law

CFTC Issues Third Extension of Relief for Foreign Swap Dealers from Dodd-Frank Swap Data Reporting | Practical Law

The CFTC extended, for the third time, until December 1, 2016, relief for certain swap dealers and MSPs established in Australia, Canada, the European Union, Japan, and Switzerland from Title VII swap data reporting requirements under Parts 45 and 46 of the CFTC's regulations.

CFTC Issues Third Extension of Relief for Foreign Swap Dealers from Dodd-Frank Swap Data Reporting

by Practical Law Finance
Published on 11 Nov 2015 • USA (National/Federal)
The CFTC extended, for the third time, until December 1, 2016, relief for certain swap dealers and MSPs established in Australia, Canada, the European Union, Japan, and Switzerland from Title VII swap data reporting requirements under Parts 45 and 46 of the CFTC's regulations.
On November 9, 2015, the CFTC issued No-action Letter 15-61 (No-action 15-61), which further extends to certain non-US swap dealers (SDs) and major swap participants (MSPs) relief from Dodd-Frank swap data reporting requirements under CFTC Regulations Parts 45 and 46 (collectively, SDR reporting rules).
This relief is an extension of relief originally granted under No-action Letter 13-75 and extended under No-action letter 14-141 (see Legal Updates, CFTC Further Extends Dodd-Frank Swap Data Reporting Relief for Foreign Swap Dealers and CFTC Issues Dodd-Frank Substituted Compliance Determinations for Non-US Jurisdictions: Related No-action Relief).
Because the CFTC has not yet issued comparability determinations for SDR reporting rules, No-action 15-61 exempts from compliance with these rules non-US SDs and MSPs that are:
  • Established in Australia, Canada, the European Union, Japan, or Switzerland.
  • Not part of an affiliated group in which the ultimate parent entity is a US SD, MSP, bank, financial holding company, or bank holding company.
The relief covers swaps of these entities entered into with non-US counterparties that are not guaranteed affiliates or conduit affiliates of a US person. (For details on the definition of "US person" under the CFTC rules, see Practice Note, The Dodd-Frank Act: Cross-Border Application of Swaps Rules: CFTC Definition of "US Person.")
The relief is provided subject to certain terms and conditions outlined in the letter and expires on the earlier of:
  • 30 days following the issuance of a comparability determination by the CFTC with respect to the SDR reporting rules for the jurisdiction in which the non-US SD or MSP is established.
  • December 1, 2016.
Part 45 covers swap data reporting to SDRs for CFTC regulatory purposes. Reporting under Part 46 is historical swap data reporting, also for regulatory purposes. For more details on these rules, see Practice Note, US Derivatives Regulation: CFTC Swap Data Reporting and Recordkeeping Rules.
Note that this relief does not extend to the recordkeeping requirements under CFTC Regulations 45.2, 45.6, 46.2, and 46.4.