Release Number 8651-23

CFTC Staff Revises No-Action Positions Regarding External Business Conduct Standards and Documentation Standards for Intended-To-Be-Cleared Swaps

February 02, 2023

Washington, D.C. — The Commodity Futures Trading Commission’s Market Participants Division today announced it has issued a time-limited no-action letter replacing CFTC Staff Letter No. 13-70, regarding certain duties imposed on swap dealers (SDs) and major swap participants (MSPs).

The letter addresses the CFTC’s Business Conduct Standards with Counterparties and certain documentation requirements imposed on SDs and MSPs as stated in CFTC Regulation 23.504 for swaps that are intended to be submitted to clearing contemporaneously with execution (ITBC Swaps).

Subject to certain conditions, the letter expands the scope of swaps covered to all ITBC Swaps of a type accepted for clearing by a registered or exempt derivatives clearing organization on the date of execution and ITBC Swaps that are executed on or pursuant to the rules of an exempt swap execution facility. The letter also makes other changes to the no-action positions in Letter 13-70.

The letter was issued in response to a request received from the International Swaps and Derivatives Association on behalf of its respective SD members. The no-action positions in the letter will expire on December 31, 2025.