CFTC Staff Letter 13-70: No-Action Relief for Swaps Intended to be Cleared

The Division of Swap Dealer and Intermediary Oversight reissues no-action relief for swap dealers and major swap participants entering into swaps intended to be cleared contemporaneously with execution, modifying conditions from Letter No. 13-33 to account for mandatory SEF registration and straight-through-processing requirements. Relief from specific disclosure, notice, and documentation obligations under Commission regulations §§ 23.402, 23.430, 23.431, 23.432, 23.434, 23.440, 23.450, 23.451, and 23.504 applies provided the swap is submitted for clearing within the time frame required for execution on a SEF or DCM. The modified relief removes conditions requiring fallback or breakage agreements between a swap dealer or major swap participant and its counterparty prior to execution, as such agreements are no longer necessary given the prompt processing standards of registered SEFs. This relief is available to all market participants entering into swaps intended to be submitted for clearing contemporaneously with execution, subject to the condition that the swap is submitted for clearing within the specified time frame.

CFTC published 6 documents in the last 30 days — get each new one by email the day it lands.

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. 13-70
No-Action
November 15, 2013
Division of Swap Dealer and Intermediary Oversight Re: No-Action Relief: Swaps Intended to be Cleared Ladies and Gentlemen:
On June 27, 2013, the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission”) published No-Action Letter No. 13-33 (the “June No-Action Letter”), which responded to requests received by the Division from the International Swaps and Derivatives Association (“ISDA”) and the Asset Management Group of the Securities Industry and Financial Markets Association (“AMG” and, together with ISDA, the “Requesting Associations”), each on behalf of its members who enter into swaps that are intended to be submitted for clearing contemporaneously with execution. 1 The June NoAction Letter provided no-action relief for these swaps from certain disclosure and notice requirements and other duties imposed on swap dealers (“SDs”) and major swap participants (“MSPs”) pursuant to Commission regulations §§ 23.402, 23.430, 23.431, 23.432, 23.434, 23.440, 23.450, and 23.451, as well as certain documentation requirements imposed on SDs and MSPs pursuant to Commission regulation § 23.504. Subsequent to issuance of the June No-Action Letter, circumstances in the market for swaps intended to be submitted for clearing contemporaneously with execution have changed. Specifically, as of October 2, 2013, swap execution facilities (“SEFs”) began mandatory registration with the Commission. 2 Further, on September 26, 2013, the Commission’s Division of Clearing and Risk and its Division of Market Oversight issued staff guidance on the Commission’s swaps straight-through-processing requirements (the “STP Guidance”). 3

Read the rest free, and get an email when CFTC publishes again

Email me when CFTC publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: Superseded

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

Amended 2 times · last 2025-12-18

2025-12-18CFTCCFTC Staff Letter 25-49: Extension of No-Action Position for Intended-to-be-Cleared Swaps on Eligible UK Trading Venuesamends
2023-02-01CFTCCFTC Staff Letter 23-01: Revised No-Action Positions for Intended-to-be-Cleared Swapssupersedes

This document supersedes: CFTC Staff Letter 13-33: No-Action Relief for Swaps Intended to be Cleared

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