December 31, 2012
CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Letter Providing Registration Relief to Certain Introducing Brokers and Commodity Trading Advisors Involved in Swaps Activities
Washington, DC – The Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission announced today in a letter that it is taking a no-action position which provides relief from the requirement to register as an introducing broker (IB) or commodity trading advisor for certain affiliates of a swap dealer or swap counterparty that is within the de minimis exception to the swap dealer definition. The relief also extends to the affiliates’ employees where the employees engage in certain activity in support of and on behalf of the swap dealer or swap counterparty. The relief is subject to a number of conditions, including that the affiliates and the swap dealer or swap counterparty undertake to be jointly and severally liable for violations of the CEA or the Commission's regulations with respect to the relevant activity, and that the affiliates and employees are not subject to a statutory disqualification.
In addition, in the same letter DSIO announced an interpretive position that an employee of a swap counterparty that is within the de minimis exception to the swap dealer definition who engages in certain activty on behalf of its employer in connection with the employer entering into a swap would not be considered by DSIO to be an IB.
Last Updated: December 31, 2012