CFTC Staff Letter 15-15: No-Action Relief for CCO Annual Report Timing

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Division of Swap Dealer and Thomas J. Smith
Intermediary Oversight Acting Director
CFTC Letter No. 15-15
No-Action
March 27, 2015
Division of Swap Dealer and Intermediary Oversight Re: No-Action Relief for Futures Commission Merchants, Swap Dealers, and Major Swap Participants from Compliance with the Timing Requirements of Commission Regulation 3.3(f)(2) Relating to Annual Reports by Chief Compliance Officers Ladies and Gentlemen:
This letter is in response to a request from the Futures Industry Association and International Swaps and Derivatives Association, dated March 10, 2015, to the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission”) for relief from the timing requirements for submitting an annual report, as set forth in Commission Regulation 3.3(f)(2), 1 by futures commission merchants (“FCMs”) and swap dealers (“SDs”). The requested relief would be applicable to annual reports required to be submitted to the Commission by the chief compliance officers (“CCOs”) of such firms. 2 The Division notes that the associations requesting relief limited the request to FCMs and SDs because their memberships do not include major swap participants (“MSPs”). However, given that the regulatory requirements of Regulation 3.3(f)(2) also apply to MSPs, the Division believes it appropriate to extend the relief equally to MSPs. Regulatory Background As amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), 3 the Commodity Exchange Act (“CEA”) requires the Commission to promulgate rules concerning the duties of CCOs of FCMs, SDs, and MSPs. 4 With respect to SDs and MSPs, Section 4s(k)(3) specifically requires SD and MSP CCOs to prepare an annual report that must accompany each appropriate financial report of the SD or MSP. 5 CEA Section 4d(d)