Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: Derivatives

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CFTC Extends Relief to CTAs With Third-Party Recordkeepers

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) has issued exemptive relief to commodity trading advisors (CTAs) from the requirement to keep records under CFTC Regulations 4.7(c)(2) and 4.33 at the CTA’s main business office. As provided in the exemptive letter, a CTA may use a third-party recordkeeper so long… Continue Reading

CFTC Extends Previously Granted No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives
On April 18, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No-Action Letter 17-22, which extends relief previously granted under CFTC No-Action Letter 17-05. CFTC No-Action Letter 17-05 allowed certain swap dealers to substitute compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the… Continue Reading

CFTC Grants Registration to NEX SEF Limited

Posted in CFTC, Derivatives
On April 20, the Commodity Futures Trading Commission announced that it had issued an Order of Registration to NEX SEF Limited (NEX) whereby NEX was granted registration status with the CFTC as a swap execution facility (SEF). In granting NEX’s application, the CFTC determined that NEX demonstrated compliance with the Commodity Exchange Act and CFTC… Continue Reading

CFTC Staff Provides Relief Associated With Swap Trade Confirmations

Posted in CFTC, Derivatives
On March 24, the Commodity Futures Trading Commission’s Division of Market Oversight extended no-action relief relating to the recordkeeping and confirmation requirements in CFTC Regulations 37.6(b), 37.1000, 37.1001, 45.2, and 45.3(a). This relief applies only to uncleared swap transactions executed on or pursuant to the rules of a Swap Execution Facility (SEF) and is subject to… Continue Reading

CFTC Extends Public Comment Period for Swap Dealers and Major Swap Participants Minimum Capital Requirement Proposal

Posted in CFTC, Derivatives
On March 16, the Commodity Futures Trading Commission published in the Federal Register its decision to extend the public comment period for the proposed rules related to minimum capital requirements for swap dealers and major swap participants (Proposal). (For a more complete discussion of the Proposal, see the December 9, 2016 edition of Corporate &… Continue Reading

EU and Prudential Regulators Issue Statements on March 1 Compliance With Swap Margin Rules

Posted in Banking, Derivatives, Dodd-Frank Developments
Lacking the ability to issue formal no-action relief from strict compliance with the variation margin rules for uncleared swaps coming into effect on March 1, the Board of Governors of the Federal Reserve System, the Office of Comptroller of the Currency (OCC) and the European Supervisory Authorities (ESA) have each issued statements suggesting that they… Continue Reading

CFTC Provides Time-Limited Relief for Variation Margin and Minimum Transfer Amount Provisions

Posted in CFTC, Derivatives
On February 13, the Division of Swap Dealer and Intermediary Oversight (Division) of the Commodity Futures Trading Commission (CFTC) provided time-limited no-action relief for failure of a swap dealer (SD) that does not have a prudential regulator to comply with the CFTC’s variation margin requirements by the March 1 compliance date (March 1 Requirements). (There… Continue Reading

SEC Simplifies Process for Electronically Filing Broker-Dealer Annual Reports

Posted in Broker-Dealer, Derivatives
The Division of Trading and Markets (Division) of the Securities and Exchange Commission has updated its no-action relief to broker-dealers and over-the-counter (OTC) derivatives dealers from the requirement to file annual and supplemental reports with the SEC in paper form. The Division had previously issued a no-action letter in December 2015 that provided relief to… Continue Reading

CFTC Releases Time Limited No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives, EU Developments
On February 1, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No Action Letter 17-05, which allows certain swap dealers to substitute—for a limited period of time—compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the “EU Rules”) for compliance with certain of the… Continue Reading

CFTC Staff Grants No-Action Relief From Residual Interest Withdrawal Restrictions

Posted in CFTC, Derivatives
On January 26, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued CFTC Letter No. 17-03, in which the Division authorized futures commission merchants (FCMs) that carry cleared swaps customer accounts to withdraw excess residual interest from the cleared swaps customer accounts prior to the time provided in CFTC Rule… Continue Reading

40 Days Left Until Compliance Date for Variation Margin Rules for Uncleared Swaps

Posted in Derivatives
As part of a global regulatory initiative, the United States, European Union, Canada, Switzerland, Japan, Hong Kong, Singapore and Australia have all adopted, or are in the process of adopting, rules (Margin Rules) that impose mandatory variation margin requirements on non-cleared swaps and, in some cases, non-cleared security-based swaps and FX derivatives (collectively, “Covered Trades”).… Continue Reading

CFTC Grants Order to LCH

Posted in CFTC, Derivatives
On January 13, the Commodity Futures Trading Commission issued an order authorizing LCH.Clearnet Limited (LCH), a CFTC-registered derivatives clearing organization (DCO), and its clearing members that are registered futures commission merchants to: (1) commingle in a cleared swaps customer account customer money, securities and property used to margin, secure or guarantee both futures and foreign… Continue Reading

CFTC Proposes to Amend Access to Swap Data Requirements

Posted in CFTC, Derivatives
On January 13, the Commodity Futures Trading Commission approved for publication in the Federal Register proposed amendments to Part 49 of the CFTC’s regulations relating to access to swap data held by Swap Data Repositories (SDR). Among other revisions, the proposal: (1) eliminates the requirement that foreign and domestic authorities seeking access to SDR swap… Continue Reading

CFTC Staff Issues Time-Limited No-Action Relief for Derivatives Clearing Organizations and Other Reporting Entities From Certain Obligations on Cleared Swap Reporting

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 19, 2016, the Division of Market Oversight (Division) of the Commodity Futures Trading Commission provided time-limited no-action relief from the swap data recordkeeping and reporting requirements for cleared swaps (cleared swaps rule) to which derivatives clearing organizations (DCOs) and reporting entities would otherwise have been subject on December 27, 2016. Subject to certain… Continue Reading

CFTC Staff Issues Time-Limited No-Action Relief for Entities Submitting Swaps for Clearing With Derivatives Clearing Organizations Acting Under Exemptive Orders or No-Action Relief

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 19, 2016, the Division of Market Oversight of the Commodity Futures Trading Commission announced time-limited no-action relief for entities submitting swaps for clearing by derivatives clearing organizations (DCOs) relying on a CFTC exemption order or no-action relief (Relief DCOs). Entities submitting such swaps for clearing are now relieved of the obligation to terminate… Continue Reading

CFTC Grants No-Action Relief From Certain Swap Clearing Requirements for Swaps With Eligible Affiliate Counterparties in Australia or Mexico

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 15, the Commodity Futures Trading Commission Division of Clearing and Risk granted US swap participants temporary no-action relief from the required clearing rule with respect to swaps entered into with eligible affiliate counterparties located in Australia and Mexico. The no-action relief will expire on December 31, 2017.… Continue Reading

CFTC Re-Proposes Minimum Capital Requirements for Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 2, the Commodity Futures Trading Commission re-proposed minimum capital requirements for swap dealers (SDs) and major swap participants (MSPs) that are not subject to prudential regulation (Covered Entities). The CFTC had initially proposed capital rules for Covered Entities in 2011 but deferred further action pending finalization and implementation of uncleared swaps margin requirements.… Continue Reading

CFTC Releases Results of ICE Futures U.S. Rule Enforcement Review

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 7, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) announced the results of its rule enforcement review of ICE Futures U.S. The review covered a one-year target period and evaluated ICE’s compliance with Designated Contract Core Principles 2 (Compliance With Rules) and 12 (Protection of Markets and Market Participants).… Continue Reading

CFTC Issues No-Action Relief Relating to Risk Disclosure Statements for Non-Institutional Customers

Posted in CFTC, Derivatives
On November 30, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight granted no-action relief for futures commission merchants (FCM) and introducing brokers (IB) consolidating risk disclosure statements sent to non-institutional customers (customers that are not eligible contract participants). CFTC regulations require an FCM or IB to provide each non-institutional customer with… Continue Reading

CFTC Staff Extends Time-Limited Swap Data Reporting Relief for Certain Foreign Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives
On November 21, the Commodity Futures Trading Commission Division of Market Oversight extended time-limited relief for certain registered swap dealers (SDs) and major swap participants (MSPs) from the swap data reporting rules set forth in Part 45 and Part 46 of the CFTC’s regulations. The relief is available to non-US SDs and non-US MSPs established… Continue Reading

CFTC Grants CME Clearing Europe Registration as a Derivatives Clearing Organization

Posted in CFTC, Derivatives
On November 29, the Commodity Futures Trading Commission approved the CME Clearing Europe (CMECE) registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act. As a registered DCO, CMECE may provide clearing services with respect to 1) swaps, subject to certain requirements; and 2) futures and options on futures contracts traded on or… Continue Reading