CFTC Staff Letter 14-107: No-Action Relief for Clearing Corporation of India Ltd. Regarding Section 5b(a)

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
Ananda Radhakrishnan
Director
202-418-5188 aradhakrishnan@cftc.gov
CFTC Letter No. 14-107
No-Action
DCR
Managing Director
The Clearing Corporation of India Ltd.
CCIL Bhavan
College Lane, Off. S K Bole Road
Dadar (West)
Mumbai, India
Re: No-Action Relief with Regard to Section 5b(a) of the Commodity Exchange Act and Commission Regulations Thereunder Dear Mr. Sridharan:
This letter responds to your letter dated July 15, 2014 (“Letter”) to the Division of Clearing and Risk (“Division”) of the Commodity Futures Trading Commission (“Commission”). In the Letter, you request that the Division confirm that it will not recommend that the Commission take enforcement action against the Clearing Corporation of India Ltd. (“CCIL”) for failure to register as a derivatives clearing organization (“DCO”) pursuant to
Section 5b(a) of the Commodity Exchange Act (“CEA”) 1
should CCIL provide certain clearing services to U.S. persons.
Under this requested relief, CCIL would be permitted to clear Indian Rupee-denominated interest rate swaps (“INR IRS”) and Indian Rupee-denominated forward-rate agreements (INR FRA”) for the proprietary trades of clearing members 2 that are U.S. persons (“U.S. Clearing Members”). You request that such relief be effective until the date upon which the Commission, acting pursuant to its authority under Section 5b(h) of the CEA, exempts CCIL from the DCO registration requirement of the CEA. 3 You represent that CCIL intends to apply for an