CFTC Staff Letter 13-34: Extension of No-Action Relief for Swap Dealers and Major Swap Participants from Valuation Data Reporting

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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 Market Oversight
CFTC Letter No. 13-34
No-Action
June 26, 2013
Division of Market Oversight
Re: Extension of Time-Limited No-Action Relief for Swap Dealers and Major Swap Participants from Compliance with Reporting Obligations Under 17 CFR § 45.4(b)(2)(ii) On December 17, 2012, the Division of Market Oversight (“DMO” or “Division”) of the Commodity Futures Trading Commission (the “Commission”) granted time-limited no-action relief from certain requirements of § 45.4 of the Commission’s regulations to swap dealers (“SDs”) and major swap participants (“MSPs”) acting as reporting counterparties for swap transactions. 1 In particular, the Commission granted a request from the International Swaps and Derivatives Association, Inc. (“ISDA”), 2 on behalf of its members that intend to register as SDs or MSPs and other similarly situated persons, for no-action relief from enforcement action against an SD or MSP acting as a reporting counterparty for a cleared swap that fails to comply with the regulation 45.4(b)(2)(ii) valuation data reporting requirements. Absent further action from the Division, the initial no-action relief would expire on June 30, 2013. This letter extends the no-action relief period to June 30, 2014. Applicable Regulatory Requirements The Dodd-Frank Wall Street Reform and Consumer Protection Act 3 (the “Dodd-Frank Act”) added to the Commodity Exchange Act 4 (the “CEA”) provisions requiring the retention and reporting of data related to swap transactions. New section 2(a)(13)(G) of the CEA requires that all swaps, both cleared and uncleared, be reported to a registered SDR. New section 21(b) of the CEA directs the Commission to prescribe standards for swap data recordkeeping and reporting.