The Division of Swap Dealer and Intermediary Oversight, Division of Clearing and Risk and the Division of Market Oversight (Divisions) of the Commodity Futures Trading Commission have extended the no-action relief previously granted to non-US swap dealers (SDs) using personnel or agents located in the United States to arrange, negotiate or execute swaps.
Pursuant to the relief, non-US SDs using US-located personnel or agents to arrange, negotiate or execute swaps are not subject to the transaction-level requirements for such swaps with non-US persons that are not themselves SDs. If a swap is with another non-US SD, a non-US SD that is using US-located personnel or agents must comply with the multilateral portfolio compression and swap trading relationship requirements under CFTC Regulations 23.503 and 23.504, respectively, but is otherwise exempt from the transaction-level requirements for such swap.
This relief is set to expire on September 30, 2015.
CFTC Letter No. 14-140 is available here.