June 4, 2014

CFTC Staff Issues Extension to Time-Limited No-Action Letter on the Applicability of Transaction-Level Requirements in Certain Cross-Border Situations

Washington, DC — U.S. Commodity Futures Trading Commission’s (CFTC or Commission) Division of Swap Dealer and Intermediary Oversight (DSIO), Division of Clearing and Risk, and Division of Market Oversight (Divisions) today issued a time-limited no-action letter that extends relief to swap dealers (SDs) registered with the Commission that are established under the laws of jurisdictions other than the United States (Non-U.S. SDs) from certain transaction-level requirements under the Commodity Exchange Act.

On November 14, 2013, DSIO issued an Advisory (DSIO Advisory) in response to inquiries from swap market participants regarding the applicability of the Commission’s Transaction-Level Requirements in certain situations. Subsequent to the issuance of the DSIO Advisory, concerns were raised by certain Non-U.S. SDs regarding compliance with the Transaction-Level Requirements, who represented that, in order to avoid market disruption for their non-U.S. counterparties, additional time would be necessary to come into compliance. The CFTC has requested public comment regarding the subjects addressed by the DSIO Advisory. In view of the foregoing, the Divisions are extending the date of the time-limited staff no-action relief provided in CFTC Letter No. 14-01.

Today’s letter provides no-action relief to Non-U.S. SDs until December 31, 2014, subject to the limitations in the letter.

Last Updated: June 4, 2014