CFTC Staff Letter 17-57: No-Action Relief for CABEI from Swap Clearing Requirement

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
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Division of Clearing and
Risk
CFTC Letter No. 17-57
No-Action
November 7, 2017
Division of Clearing and Risk
Geoffrey B. Goldman
Shearman & Sterling LLP
599 Lexington Avenue
New York, NY 10022-6069
Re: No-Action Relief for Banco Centroamericano de Integración Económica from the Swap Clearing Requirement in Section 2(h)(1) of the Commodity Exchange Act and Commodity Futures Trading Commission Regulations 50.2 and 50.4 Dear Mr. Goldman:
On July 26, 2017, you sent a letter on behalf of Banco Centroamericano de Integración Económica (“CABEI”) (“Request Letter”), to the Division of Clearing and Risk (“Division”) of the Commodity Futures Trading Commission (“Commission”) requesting relief from the swap clearing requirement of section 2(h)(1) of the Commodity Exchange Act (“CEA”) (“Clearing Requirement”). Based on the facts described in the Request Letter, the Division has decided to not recommend that the Commission take enforcement action against CABEI for failure to comply with the Clearing Requirement as implemented by Commission regulations 50.2 and
50.4. 1
The Division believes that granting this no-action relief to CABEI would be consistent with the final Federal Register release adopting the end-user exception to the Clearing Requirement (“End-User Exception”), in which the Commission determined that certain international financial institutions should not be subject to the Clearing Requirement. 3