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

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

The CFTC extended, for the fourth time, until December 1, 2017, 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 Fourth Extension of Relief for Foreign Swap Dealers from Dodd-Frank Swap Data Reporting Rules

by Practical Law Finance
Published on 22 Nov 2016 • USA (National/Federal)
The CFTC extended, for the fourth time, until December 1, 2017, 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 21, 2016, the CFTC issued No-Action Letter 16-79 (No-Action 16-79), which extends for the fourth time relief to certain non-US swap dealers (SDs) and major swap participants (MSPs) 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 twice under No-Action Letters 14-141 and 15-61 (see Legal Update, CFTC Issues Third Extension of Relief for Foreign Swap Dealers for Dodd-Frank Swap Data Reporting).
Because the CFTC has not yet issued comparability determinations for SDR reporting rules, No-Action 16-79 exempts from compliance with Part 45 and Part 46 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 (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, 2017.
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.