CFTC Staff Letters

Time-Limited No-Action Relief from the Clearing Requirement for Swaps Between Affiliated Counterparties.

By letter dated July 16, 2012, X requested that the Division confirm that it will not recommend enforcement action to the Commission concerning X’s proposed repurchase and reverse repurchase transactions (collectively, “repos”) under Commission Regulation 1.25 (investment of customer funds). X intends to enter into repos, using customer funds, subject to Regulation 1.25(d). The repos will subsequently be submitted for clearing by Y, an SEC-registered securities clearing agency. By clearing the repos, Y will become X’s counterparty. Although Y is not a “permitted counterparty” under Regulation 1.25(d)(2), the Division believes that permitting X to clear repos with Y is consistent with the risk-mitigation purpose of the regulation’s counterparty limitations.

Requests for No-Action Relief from Commission Regulation 23.451 in Connection with Dealings with Certain Governmental Plans and for Clarification Concerning the “Look-Back” Provision of Commission Regulation 23.451.

Time-Limited No-Action Relief for Swap Dealers from Certain Swap Data Reporting Requirements of Part 43, Part 45 and Part 46 of the Commission’s Regulations.

Staff Interpretation Regarding Part 22.

Staff No-Action Relief: Temporary Delay of Compliance Date for Part 22 Rules Due to Effects of Hurricane Sandy.

Request for No-Action Relief for Swap Dealers and Major Swap Participants from Compliance with Certain Internal Business Conduct Requirements Found in Subpart F to Part 23 of the CFTC’s Regulations

Division of Clearing and Risk staff issued an interpretation providing clarification that while regulation 22.2(d) prohibits an FCM from permitting a lien on Cleared Swaps Customer Collateral that it holds, regulation 22.2(d) does not prohibit a Cleared Swaps Customer from granting a lien on his or her own account at the FCM, nor does the regulation prohibit the FCM from taking action to foster the Cleared Swaps Customer’s grant of such a lien.

The Division of Swap Dealer and Intermediary Oversight issued an interpretation that a limited liability company whose members were all family members was not a commodity pool within the meaning and intent of Regulation 4.10(d)(1) and, consequently, that the managing member was not a CPO thereof.

The Division will not recommend that the Commission take an enforcement action against FCMs or IBs for failure to be fully compliant with Regulations 1.71(a)-(c), (e) and (f) until 60 days beyond the current June 4, 2012 compliance date of the Regulation (August 3, 2012).