CFTC Staff Letter 13-40: No-Action Relief from Portfolio Reconciliation Requirements for Swap Dealers and Major Swap Participants

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5977
Facsimile: (202) 418-5407 gbarnett@cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Gary Barnett
Director
CFTC Letter No. 13-40
No-Action
June 27, 2013
Division of Swap Dealer and Intermediary Oversight Re: Time-Limited No-Action Relief Regarding Commission Regulation 23.502 for Swap Dealers and Major Swap Participants Ladies and Gentlemen:
This letter is in response to a request from the International Swaps and Derivatives Association (“ISDA”), on behalf of its members that are swap dealers (“SDs”) or major swap participants (“MSPs”), and other similarly situated persons, received by the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission”), that the Commission extend the July 1, 2013 compliance date for Regulations
23.502 and 23.504.
1
ISDA represents that, despite good faith efforts, SDs and MSPs face unforeseen delays in the development of market-wide operational infrastructure needed for an efficient portfolio reconciliation process. The relief provided in this no-action letter is available to all SDs and MSPs. The Division has determined to provide no-action relief, as detailed herein. Applicable Regulatory Requirements
Section 731 of the Dodd-Frank Act 2
amended the Commodity Exchange Act (“CEA”) by adding a new Section 4s, which established requirements relating to the registration and regulation of SDs and MSPs. 3