July 31, 2013

CFTC Division of Clearing and Risk Issues Notice Regarding Expiration of Cross-Border Exemptive Relief from the Clearing Requirement

Washington, DC —The Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk announced today that on October 9, 2013, certain exemptive relief regarding the Clearing Requirement is scheduled to expire. As of October 10, 2013, exemptive relief from the Clearing Requirement will no longer be available for an entity that is covered as a U.S. person under the CFTC’s interpretive guidance and policy statement regarding the cross-border application of the swaps provisions of the Commodity Exchange Act, including certain collective investment vehicles organized outside of the United States. Additionally, on October 10, 2013, staff anticipates the following transactions to be submitted for clearing with a registered derivatives clearing organization (DCO) (unless an exception, exemption, or other relief from the Clearing Requirement is available): (1) all transactions by foreign branches of U.S. banks that are registered swap dealers (SDs) or major swap participants (MSPs), (2) transactions by SDs and MSPs that are not U.S. persons with guaranteed affiliates or affiliate conduits of U.S. persons (established in any jurisdiction outside the U.S.) that are not SDs or MSPs, or with foreign branches of U.S. banks that are registered SDs or MSPs, and (3) guaranteed affiliates or affiliate conduits of U.S. persons (established in any jurisdiction outside the U.S.) that are not SDs or MSPs, for transactions with other such entities.*

*The CFTC’s exemptive order regarding compliance with certain swap regulations was effective as of July 13, 2013, and the Commission is soliciting comments for 30 days.

Last Updated: July 31, 2013