December 31, 2012

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Letter Providing Time-Limited Registration Relief to Certain Associated Persons

Washington, DC – The Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission (CFTC) announced in a letter that it is taking a no-action position that extends the temporary registration relief it previously granted in CFTC Letter 12-15 (October 12, 2012) to certain associated persons (AP).

DSIO stated that, subject to certain conditions, it would not recommend that the Commission commence an enforcement action against any person for failure to register as an AP of a futures commission merchant, introducing broker, commodity pool operator, or commodity trading advisor where the requirement to register as an AP is solely because of the person’s involvement with swaps or as a result of the transition of certain contracts on the Intercontinental Exchange, Inc. and the New York Mercantile Exchange to clearing as commodity futures and options transactions.

The relief is temporary and subject to certain conditions, including the filing of an application for registration as an AP on or before March 31, 2013. Additionally, as a condition to the relief, on and after March 31, 2013, persons claiming the relief must make a good faith effort to comply with any requirements in the Commodity Exchange Act (CEA) and CFTC regulations applicable to persons who are registered or required to be registered as an AP – notwithstanding that due to the high volume of registration applications expected to be filed, the application may not be processed, and registration of the person may not be effective until a later date.

The relief provided in the letter does not affect, and thus persons claiming the relief must comply with, those requirements in the CEA and CFTC regulations that apply to "persons" regardless of registration status, both before and after March 31, 2013.

Upon termination of the relief provided by the letter, where the person becomes registered as an AP, the person must comply in full with all of the requirements applicable to registered APs.

Last Updated: December 31, 2012