RegAlert2018-05-16 | CFTC Staff Letter 18-13Added · Updated
CFTC Staff Letter 18-13: No-Action Relief for Non-U.S. Persons from Counting Swaps with International Financial Institutions Toward SD and MSP Thresholds
The Division of Swap Dealer and Intermediary Oversight will not recommend enforcement action against a Non-U.S. person that is neither a guaranteed affiliate nor a conduit affiliate of a U.S. person if it excludes swaps with specified International Financial Institutions from its aggregate gross notional amount calculations. This exclusion applies when determining whether the entity exceeds the de minimis threshold for Swap Dealer registration or the thresholds for Major Swap Participant status. The relief covers swaps with entities such as the World Bank Group, the IMF, and the North American Development Bank, treating them as Non-U.S. persons for this specific calculation regardless of their U.S. incorporation or U.S. guarantees.
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Division of Swap Dealer and
Intermediary Oversight
U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Matthew B. Kulkin
Director
CFTC Letter No. 18-13
No-Action
May 16, 2018
Division of Swap Dealer and Intermediary Oversight Re: No-Action Position: Relief for Certain Non-U.S. Persons from Including Swaps with International Financial Institutions in Determining Swap Dealer and Major Swap Participant Status Ladies and Gentlemen:
This letter is in response to a request1 received by the Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the Commodity Futures Trading Commission (“Commission”) from ABN AMRO Bank N.V. (the “Requestor”) for a position of no-action if the Requestor does not include one or more swaps entered into with certain international financial institutions (as defined below, “IFIs”) in determining whether it is (i) deemed to be a swap dealer (“SD”) pursuant to the criteria set forth in the Commission’s definition of “swap dealer;”2 or (ii) a major swap participant (“MSP”) pursuant to the criteria set forth in the Commission’s definition of “major swap participant.”3
I. Regulatory Background
A. Swap Dealer and Major Swap Participant Definitions In accordance with the definition of “swap dealer” in section 1a(49)(D) of the Commodity Exchange Act (“CEA”)4 the Commission has excepted from designation as an SD any entity that 1 Letter dated January 25, 2018, from ABN AMRO Bank N.V. to Matthew B. Kulkin, Director, DSIO. 2 See subparagraph (4) of the definition of “swap dealer” in 17 CFR § 1.3. See also Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant,” and “Eligible Contract Participant,” 77 FR 30596, 30626-35 (May 23, 2012) (hereinafter “Entity Definitions Rulemaking”). 3 See the definition of “major swap participant” in 17 CFR § 1.3. 4 7 USC § 1 et seq.
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Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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