December 22, 2014

CFTC Staff Extends Time-Limited No-Action Relief to Japan Securities Clearing Corporation and Its Qualifying Clearing Participants and Affiliates

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (Division) today extended the no-action relief granted in CFTC Letter 13-73 to Japan Securities Clearing Corporation (JSCC) and its qualifying clearing participants and affiliates.

In the time-limited no-action letter issued today, the Division will not recommend that the Commission take enforcement action against JSCC, an applicant for registration as a derivatives clearing organization (DCO), for failure to register as a DCO pursuant to the requirements of Section 5b(a) of the Commodity Exchange Act (CEA); or any qualified clearing participant of JSCC, or a parent or affiliate of a JSCC qualified clearing participant, for failure to clear a Japanese yen-denominated interest rate swap that is required to be cleared under Section 2(h)(1)(A) of the CEA, through a registered or exempt DCO.

This extension will expire at the earlier of the date on which JSCC registers as a DCO with respect to its interest rate swap clearing business or December 31, 2015. The no-action relief is subject to several conditions outlined in the letter.

Last Updated: December 22, 2014