Release Number 8337-20

CFTC Staff Extends Temporary No-Action Relief from the Trade Execution Requirement for Certain Affiliated Counterparties

December 17, 2020

— The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) today extended previously issued no-action relief from the trade execution requirement for certain inter-affiliate transactions. 

This temporary relief is being extended as a result of the Commission’s recent approval of a final rule establishing two exemptions from the trade execution requirement. [See CFTC Press Release No. 8330-20]

The first trade execution exemption applies to a swap that qualifies for, and meets the associated requirements of, any exception or exemption under Part 50 of the CFTC’s regulations. The second codifies relief provided under CFTC Letter No. 17-67 and prior staff letters, and applies to a swap that is entered into by eligible affiliate counterparties and cleared, regardless of the affiliates’ ability to claim the inter-affiliate clearing exemption under CFTC Regulation 50.52.

This extension is provided under the current staff letter until the effective date of the final rule, which will be 30 days after publication of the rule in the Federal Register.