RegAlert2013-06-10 | CFTC Staff Letter 13-25Added · Updated
CFTC Staff Letter 13-25: No-Action Relief for Corporación Andina de Fomento from Swap Clearing Requirement
The Division of Clearing and Risk will not recommend enforcement action against Corporación Andina de Fomento for failing to clear swaps as required by Section 2(h)(1) of the Commodity Exchange Act and Regulations 50.2 and 50.4. This relief applies to interest rate and currency swaps entered into by the entity to hedge commercial risks, consistent with the End-User Exception for international financial institutions. The exemption does not waive recordkeeping or reporting obligations under Parts 23 and 45 of the Commission’s regulations. The Division retains the authority to modify, suspend, or terminate this relief based on material facts.
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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Facsimile: (202) 418-5521 www.cftc.gov
Division of Clearing and
Risk
CFTC Letter No. 13-25
No-Action
June 10, 2013
Division of Clearing and Risk
David H. Kaufman
Morrison & Foerster
1290 Avenue of the Americas
New York, NY 10104-0050
Re: No-Action Relief for Corporación Andina de Fomento from the Swap Clearing Requirement in Section 2(h)(1) of the Commodity Exchange Act and Commission Regulations 50.2 and 50.4 Dear Mr. Kaufman:
On January 31, 2013, you sent a letter on behalf of Corporación Andina de Fomento (“CAF”) (the “Request Letter”), to the Division of Clearing and Risk (the “Division”) of the Commodity Futures Trading Commission (“Commission”) requesting relief from the swap clearing requirement of Section 2(h)(1) of the Commodity Exchange Act (“CEA”) (“the Clearing Requirement”). Based on the facts described in the Request Letter, the Division has decided to not recommend that the Commission take enforcement action against CAF for failure to comply with the Clearing Requirement as implemented by Commission Regulations 50.2 and 50.4. 1 The Division believes that granting this no-action to CAF would be consistent with the final Federal Register release adopting the end-user exception to the clearing requirement (“End-User Exception”), 2 in which the Commission determined that certain international financial institutions should not be subject to the Clearing Requirement. 3
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Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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