On November 19, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) issued a staff letter extending no-action relief to certain CFTC-registered swap dealers (SDs) and major swap participants (MSPs). The no-action relief, which was initially granted in 2013 and subsequently extended several times, was set to expire on December 1.

Under the terms of CFTC Letter No. 20-37, DMO confirms that it will not recommend that the CFTC take an enforcement action against a non-US SD or a non-US MSP for failure to comply with the swap data reporting requirements in Part 45 and Part 46 of the CFTC’s regulations, provided:

  • the swaps are with non-US counterparties that are not guaranteed affiliates, or conduit affiliates, of a US person;
  • the entity is established in Australia, Canada, the European Union, Japan, Switzerland, or the United Kingdom; and
  • the entity is not part of an affiliated group in which the ultimate parent entity is a US SD, US MSP, US bank, US financial holding company, or US bank holding company.

The no-action relief is time-limited and will expire on the earlier of December 1, 2022 or 30 days following the issuance of a CFTC comparability determination on swap data reporting rules for the jurisdiction in which the non-US SD or non-US MSP is established.

CFTC Letter No. 20-37 is available here.