On January 8, the Commodity Futures Trading Commission Division of Market Oversight issued a no-action letter (the Letter) supplementing the relief provided in CFTC Letter 17-27. CFTC Letter 17-27 generally permitted swap execution facilities (SEFs) and designated contract markets (DCMs) to correct clerical or operational errors discovered after a swap has been cleared.

The Letter provides an alternative error correction process by which SEFs and DCMs may permit counterparties to determine that an error has occurred and correct the error, subject to ex post facto review by the SEF or DCM. The Letter does not replace CFTC Letter 17-27, and SEFs and DCMs may still continue to implement policies pursuant to the conditions set forth in CFTC Letter 17-27.

A full copy of the release is available here.