June 27, 2013

CFTC’s Division of Market Oversight Issues Extension of Time-Limited, No-Action Relief for Swap Dealers and Major Swap Participants from the Reporting Requirements of Part 45 for CDS Clearing-Related Swaps

Washington, DC – The Commodity Futures Trading Commission’s (“Commission”) Division of Market Oversight (“Division”) today issued a no-action letter providing an extension of time-limited relief to Swap Dealers (“SDs”) and Major Swap Participants (“MSPs”) from the obligation to report swap data under part 45 of the Commission’s regulations for cleared credit default swaps (“CDS”) that are entered into pursuant to a derivatives clearing organization’s (“DCO”) rules related to its price submission process for determining end-of-day settlement prices for cleared CDS (“CDS Clearing-Related Swaps”).

The no-action letter provides that the Division will not recommend that the Commission take enforcement action against a reporting counterparty, an SD or MSP, for failure of such SD or MSP to comply with its obligations to report swap data required under part 45, for CDS Clearing-Related Swaps.  The no-action relief is subject to, among others, the following conditions: (i) the reporting counterparty, as defined in part 45, must be a clearing member of a DCO that is eligible to clear CDS indices and must participate in that DCO’s CDS Settlement Price Process, and (ii) the no-action relief will apply only to CDS Clearing-Related Swaps arising from, or entered into pursuant to, a DCO’s Settlement Price Process, as required by the DCO’s rules and procedures.  The no-action relief expires on December 31, 2013.

Last Updated: June 27, 2013