The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued no-action relief to non-US persons that are not guaranteed or conduit affiliates of US persons (Non-Guaranteed Non-US Persons) from counting certain swaps toward the swap dealer (SD) de minimis threshold.In its Cross-Border Interpretive Guidance and Policy Statement, the CFTC stated that Non-Guaranteed Non-US Persons do not need to count swaps with certain persons, including a guaranteed affiliate of a US person that is a swap dealer (Guaranteed SD Affiliate). DSIO’s no-action relief extends this policy by granting relief under circumstances in which a Guaranteed SD Affiliate has crossed the de minimis threshold and is therefore required to register as an SD within two months. 

Pursuant to the no-action relief, a Non-Guaranteed Non-US Person is not required to include, for de minimis calculation purposes, swaps traded with a Guaranteed SD Affiliate during the two-month period after which the Guaranteed SD Affiliate has crossed the de minimis threshold. Such relief is subject to certain conditions, including a requirement that the Guaranteed SD Affiliate represent in writing that the Guaranteed SD Affiliate intends to register as an SD and the date by which it is required to register. A copy of such representation must be sent to DSIO via electronic mail within 48 hours of execution of the swap. 

CFTC Letter No. 13-64 is available here.