home Latest News The Financial Report, Vol. 6, No. 21 – US Commodity Futures Trading Commission Developments – Lexology

The Financial Report, Vol. 6, No. 21 – US Commodity Futures Trading Commission Developments – Lexology

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No-Action Relief and Exemptive Orders   

No-action relief granted from written acknowledgment requirements in Regulations 1.20(d), 1.26(b), and 22.5. The Division of Clearing and Risk confirmed that it will not recommend that the CFTC take enforcement action against CME Clearing or Liquidity Facility Depositories for executing and submitting to the CFTC modified written acknowledgment letters in place of the form letters required by CFTC Regulations 1.20, 1.26, and 22.5. (11/1/2017)   

Staff extends no-action relief from the execution requirement for swaps in certain types of package transactions. The CFTC announced that its Division of Market Oversight has extended no-action relief for swaps executed as part of a package transaction in certain categories. This extension to November 15, 2020, will enable the DMO to continue to assess the appropriate response for applying the trade execution requirement to swaps in certain types of package transactions. (10/31/2017)   

Staff extends no-action relief from certain audit trail requirements related to post-execution allocation information. The CFTC announced that its DMO extended no-action relief to swap execution facilities from the requirement that the SEFs capture post-execution allocation information in their audit trail data. This extension to November 15, 2020, will enable the DMO to continue to assess audit trail requirements related to post-execution allocation information. (10/31/2017)   

Staff issues no-action relief for SDs from compliance with variation margin requirements applicable to legacy SPV swaps. The CFTC announced that its Division of Swap Dealer and Intermediary Oversight is providing no-action relief to registered swap dealers from compliance with the variation margin requirements of CFTC Regulation 23.153 when amending or novating swaps in existence before March 1, 2017, with issuers that are special purpose vehicles. The DSIO previously provided similar relief from certain business conduct standards concerning the legacy SPV swaps in a 2015 no-action letter. (10/27/2017)   

Other Developments   

Current swap dealer de minimis threshold is extended to December 2019. The CFTC announced that it has issued an Order that will keep the swap dealer de minimis threshold at US$8 billion until December 2019. This one-year extension will give the agency additional time to complete the current data analysis and for it to consider appropriate further action. (10/26/2017)