December 7, 2012
CFTC’s Division of Swap Dealer and Intermediary Oversight Provides No-Action Relief to Swap Dealers and Major Swap Participants from Compliance with Statutory Disqualification Prohibition with Respect to their Association with Certain Persons
Washington, DC – The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) announced the issuance of limited no-action relief to Swap Dealers and Major Swap Participants (collectively, Swap Entities) from compliance with the prohibition in Regulation 23.22(b) against permitting a person who is subject to a statutory disqualification to effect or be involved in effecting swaps on behalf of the Swap Entity. The Division issued this relief with respect to: (1) non-domestic associated persons (APs) of Swap Entities who deal only with non-domestic swap counterparties; and (2) persons employed in a clerical or ministerial capacity (Employees) by Swap Entities. As the Division explains in the letter, the purpose of this relief is to align the treatment of these APs and Employees with the treatment of all other APs and Employees under the Commodity Exchange Act and the CFTC’s regulations.
Last Updated: December 7, 2012