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On December 18, the Division of Swap Dealer and Intermediary Oversight (DSIO), the Division of Market Oversight (DMO) and the Division of Clearing and Risk (DCR) each issued a no-action letter providing relief to market participants in preparation for the transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates (collectively with LIBOR, IBORs). The letters identify the terms and conditions pursuant to which counterparties may be eligible for relief in connection with amending swaps to replace provisions referencing discontinued IBORs with alternative benchmarks.
Continue Reading CFTC Grants Market Participants LIBOR-Transition Relief

On February 12, the Commodity Futures Trading Commission announced 2019 Examination Priorities (the “Examination Priorities”) for registrants of the Division of Market Oversight (DMO), Division of Swap Dealer and Intermediary Oversight (DSIO), and Division of Clearing & Risk (DCR). This marks the first time that the agency has published Examination Priorities for its divisions.
Continue Reading CFTC Divisions Announce 2019 Examination Policies

On August 23, the Commodity Futures Trading Commission proposed amendments to Rule 50.5 in order to exempt certain bank holding companies, savings and loan holding companies, and community development financial institutions from the clearing requirement for certain swaps. The proposed amendments would codify no-action relief that the Division of Clearing and Risk (DCR) had granted…

The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) has extended no-action relief previously granted to the Shanghai Clearing House in May.

The no-action relief provides that DCR will not recommend the CFTC take enforcement action against the Shanghai Clearing House for failure to register as a derivatives clearing organization (DCO) in light …

On November 7, the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) published Staff Letters 17-57, 17-58 and 17-59 (Staff Letters), which provided Banco Centroamericano de Integración Económica, the European Stability Mechanism, and the North American Development Bank, respectively, with no-action relief from the swap clearing requirements set forth in Section 2(h)(1)…

On May 16, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) issued No-Action Letter 17-26, which extends relief previously granted to the Shanghai Clearing House under CFTC No-Action Letter 16-56. CFTC No-Action Letter 16-56 is effective until (and excluding) May 31.
Continue Reading CFTC’s Division of Clearing and Risk Extends No-Action Relief for Shanghai Clearing House

On November 28, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) and Division of Market Oversight (DMO) each extended previously issued no-action relief from clearing and trade execution requirements for certain inter-affiliate transactions. As discussed in the November 20, 2015 edition of the Corporate & Financial Weekly Digest, DMO previously provided time-limited no-action relief exempting certain affiliates from the trade execution requirement. This relief is available to affiliate counterparties that satisfy CFTC regulation 50.52(a) but not 50.52(b), (c) or (d), and are not exempt from clearing. DMO has extended its relief to December 31, 2017.
Continue Reading CFTC Extends Time-Limited No-Action Relief From the Clearing and Trade Execution Requirements for Certain Affiliated Counterparties

On May 31, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) issued a no-action letter stating it would not recommend the CFTC take enforcement actions against the Shanghai Clearing House (SHCH) for failure to register as a derivatives clearing organization.
Continue Reading CFTC Issues No-Action Letter for Shanghai Clearing House