CFTC Grants Reporting Relief


The US Commodity Future Trading Commission has given the swaps industry relief from multiple regulatory requirements in a pair of year-end no-action relief letters.

The CFTC staff earlier this week issued a conditional no-action relief to derivatives clearing organizations regarding their obligation to report new primary economic terms data required under the Cleared Swap Rule.

Under the terms of the letter, the CFTC’s Division of Market Oversight will not recommend that the regulator takes any enforcement action against registered DCOs that fail to report continuation data on the original swaps accepted for clearing by DCOs.

The relief depends on the DCOs providing the CFTC with certain information on all original swaps they have cleared during the relief periods, according to the regulator.

The relief for reporting entities will last until March 27, 2017, or until such a date when the Swap Data Repository has updated its data standard and accepts the new PET data fields.

However, DCOs will have relief until June 27, 2017, or until SDRs have successfully tested the reporting of original swap termination messages, according to the regulator.

In its second temporary no-action relief letter, the CTFC also has given entities that submit swaps to DCOs for clearing a brief break from their obligation to terminate the original “alpha” swap and report any swaps between the relief CDO counterparties and the relief DCO.

This relief lasts until January 31, 2018, the effective data of any CFTC regulation that alters the reporting obligations of any entities on the reporting of affected swaps, or the revocation or expiration of exemptive orders or no-action letters issued to the relief DCO, whichever event happens first.

The relief is contingent on the relief DCO counterparty providing certain information to the relief DCO that lets the relief DCO meet its reporting obligations, added the regulator.

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