CFTC Staff Letter 15-38: Further Extension of No-Action Relief for SD and MSP 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. 15-38
No-Action
June 12, 2015
Division of Market Oversight
Re: Further 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 section 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, DMO 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 SDs and MSPs acting as reporting counterparties for cleared swaps that fail to comply with the regulation 45.4(b)(2)(ii) valuation data reporting requirements. The initial no-action relief was scheduled to expire on June 30, 2013. Subsequently, the Division extended the initial period of relief to June 30, 20143 and then further extended the relief to June 30, 2015.4 This letter further extends the no-action relief period to June 30, 2016. Applicable Regulatory Requirements The Dodd-Frank Wall Street Reform and Consumer Protection Act5 (the “Dodd-Frank Act”) added to the Commodity Exchange Act6 (the “CEA”) provisions requiring the retention 1 CFTC Letter No. 12-55 (December 17, 2012). 2 ISDA submitted its request for no-action relief pursuant to Commission regulation 140.99 by letter on December 13, 2012. 3 CFTC Letter No. 13-34 (June 26, 2013). 4 CFTC Letter No. 14-90 (June 30, 2014). 5 Pub. L. 111-203, 124 Stat. 1376 (2010). 6 7 U.S.C. §§ 1, et seq.