December 31, 2012

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues Further No-Action Relief for Certain U.S. Banks Wholly Owned by Non-U.S. Swap Dealers, for Purposes of Making Calculations Under the Swap Dealer Definition

Washington, DC – The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a no-action letter that provides further relief for certain U.S. banks that are wholly owned by non-U.S. swap dealers.

The no-action letter extends the relief provided in CFTC Staff Letter No. 12-61, issued on December 20, 2012, to foreign-owned U.S. banks with differing ownership structures, including state-chartered banks regulated by the Federal Reserve or the Federal Deposit Insurance Corporation. The no-action letter states that the Division will not recommend that the Commission take enforcement action against any U.S. bank that is wholly owned by a foreign entity for failure to consider the swap dealing activities of its foreign affiliates, or the U.S. branches of such affiliates, with respect to swap positions executed from and after October 12, 2012, when determining whether such U.S. bank satisfies the de minimis exception to the swap dealer definition and registration requirements, so long as the U.S. bank meets certain conditions specified in the letter.

Further, to rely on the relief provided in the no-action letter, a person must file a claim with DSIO.

Last Updated: December 31, 2012