CFTC Staff Letter 17-12: No-Action Relief for Minimum Transfer Amount with Respect to Separately Managed Accounts

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
Intermediary Oversight
Eileen T. Flaherty
Director
CFTC Letter No. 17-12
No-Action
February 13, 2017
Division of Swap Dealer and Intermediary Oversight Re: Commission Regulations 23.152(b)(3) and 23.153(c): No-Action Posi￾tion for Minimum Transfer Amount with respect to Separately Man￾aged Accounts Ladies and Gentlemen:
This letter is in response to a request for a no-action position regarding Commission Regulations 23.152(b)(3) and 23.153(c) received by the Division of Swap Dealer and In￾termediary Oversight (“DSIO”) of the Commodity Futures Trading Commission (“Commission”) from the Securities Industry and Financial Markets Association’s As￾set Management Group (“SIFMA AMG”) on behalf of its members that enter into swaps with swap dealers (“SDs”) that are registered with the Commission and subject to the Commission’s rules regarding margin requirements for uncleared swaps.1 Specifically, SIFMA AMG asked that DSIO provide relief that would permit SDs entering into swaps with “Separately Managed Accounts” (as defined below) to treat each such account as a separate counterparty for purposes of applying the minimum transfer 1 The Commission’s margin requirements for uncleared swaps apply only to SDs and major swap partici￾pants for which there is not a prudential regulator. See 7 U.S.C. 6s(e)(1)(B). SDs and major swap partici￾pants for which there is a prudential regulator must meet the margin requirements for uncleared swaps established by the applicable prudential regulator. 7 U.S.C. 6s(e)(1)(A). See also 7 U.S.C. 1a(39) (defining the term “Prudential Regulator” to include the Board of Governors of the Federal Reserve System; the Of￾fice of the Comptroller of the Currency; the Federal Deposit Insurance Corporation; the Farm Credit Ad￾ministration; and the Federal Housing Finance Agency). The Prudential Regulators published final mar￾gin requirements in November 2015. See Margin and Capital Requirements for Covered Swap Entities, 80 FR 74840 (Nov. 30, 2015).