Washington, D.C. — The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) and Division of Data (DOD) today issued a staff no-action letter regarding certain Part 43 and Part 45 swap reporting obligations for swaps transitioning under the ISDA LIBOR fallback provisions from referencing the remaining tenors of USD LIBOR, as well as USD LIBOR ICE Swap Rates and Moscow Prime Offered Rate (together, the Impacted Rates), to referencing risk-free rates (RFRs) following the cessation or non-representativeness of the Impacted Rates on June 30, 2023.

The letter states DMO and DOD will not recommend the CFTC take enforcement action against an entity for failure to timely report under Part 45 the change in a swap’s floating rate. This letter covers those floating rate changes that are made under the ISDA LIBOR fallback provisions from Impacted Rates to the applicable RFR, but only in the event the entity uses its best efforts to report the change by the applicable deadline in Part 45 and in no case reports the required information later than five business days from, but excluding, June 30, 2023.

The letter also states DMO and DOD will not recommend the CFTC take enforcement action against an entity for failure to report under Part 43 the change in the floating rate for a swap modified after execution to incorporate the ISDA LIBOR fallback provisions to transition from referencing any Impacted Rate to referencing an RFR.