END-USER CLEARING EXCEPTION INSTRUCTIONS

Rule

END-USER CLEARING EXCEPTION/EXEMPTION 

INSTRUCTIONS & FORM

Section 2(h)(7)(A) of the CEA and CFTC Regulation §Regulations 50.50 and §50.51, as well as applicable CFTC 

Staff No- Action Letters 14-144, 16-01 and 16-02, provide for a number of exceptions and an exceptionexemption

from required clearing for swaps entered into by certain End Users (non-financial end users, financial cooperatives, 

treasury affiliates, bank holding companies and savings and loan holding companies, and community development 

financial institutions (collectively, the “End-User Exception”). The reporting full requirements are listed in CFTC 

Regulation §50.50(a) through§50.50(d) and can be found at: 

http://www.cftc.gov/LawRegulation/FederalRegister/FinalRules/2012-17291

Pursuant to CFTC Regulation §50.50(b), certain Reporting obligations may be satisfied on either a swap- by-swap 

or annual basis. To make required reporting easier, Each counterparty claiming the End-User Exception (“Electing 

Counterparty”) forfrom clearing swaps that are reported to the DTCC Data Repository (U.S.) LLC ("(“DDR")”), may 

provide the required information on an annual form to the DDR (“Annual End-User Clearing Exception Form”). This 

information may include, but is not limited to, confirmation that the swap is being utilized to hedge or mitigate risk, 

how the Electing Counterparty satisfies its financial obligations, as well as additional information if it is an issuer of 

securities (see Step 2 below)./Exemption Form”). 

The following elections and representations must be reported by the Reporting Counterparty on a swap- by-swap 

basis (See Step 3 below):Entity, as defined in CFTC Regulation 49.2 (“Reporting Entity”), on each swap they submit 

where the End-User Exception has been elected:

1. Notice of election of the End-User Exception; 

2. The identity of the counterparty(s) making the election.; and

3. The type of clearing exception or exemption being claimed. 

The Electing Counterparty must have an Annual End-User Clearing Exception/Exemption Form provided by the 

Electing Counterparty must be on file with the DDR whenever the Electing Counterparty elects the swap-by-swap 

exception or exemption, unless all required information is being reported by the Reporting CounterpartyEntity. 

STEP 1: ON-BOARDING

DDR does not require that Electing Counterparties onboardcomplete the onboarding process prior to filefiling the 

Annual End-User Clearing Exception/Exemption Form; however, it is suggested that firms onboard with DDR in 

order to take advantage of other SDRDDR functionality including, viewing position reports and validating and 
disputing the information in swaps for which the Electing Counterparty is a counterparty (“alleged swaps”). 

If the Electing Counterparty wants to onboard with the DDR there are two different methods of on- boarding. 

Both require the Electing Counterparty toit must contact the DDR Onboarding team at gtr-onboarding@dtcc.com.

gtr-onboarding@dtcc.com. 

1. The Electing Counterparty can complete a “light” read-only onboarding. This type of onboarding allows the Electing Counterparty to review alleged swaps; or 

2. The Electing Counterparty can complete a “full” onboarding, which allows the Electing 

Counterparty access to reports and reporting connectivity. 

However, if an Electing Counterparty is electing the relief provided to eligible treasury affiliates by CFTC Staff 

No-Action Letter 14-144 (“Treasury Affiliate No-Action Relief”),1 then the Electing Counterparty must be 

onboarded to ensure compliance with the Reporting Conditions of the Treasury Affiliate No-Action Relief. 

STEP 2: ANNUAL FORM – ELECTING COUNTERPARTY PROCESS

Prior to claiming the End-User Exception for a swap, each Electing Counterparty should complete and return an 

Annual End-User Clearing Exception/Exemption Form; otherwise, all required information must be reported by the 

Reporting CounterpartyEntity. The process for filing an Annual End-User Clearing Exception/Exemption Form is 

as follows: 

1. The Electing Counterparty contact goes to the form on pages 7-8 of this document. The 

Electing Counterparty contact can either print the PDF document or download the Adobe 

Professional Document. 

1. The Electing Counterparty completes the Annual End-User Clearing Exception/Exemption Form (located at 

the end of this document) electronically (Adobe) or manually as a hard copy.. 

2. The Electing Counterparty submits the completed Annual End-User Clearing Exception/Exemption Form to 

GTREndUserExemption@dtcc.com either as a hard copy file or electronically as an Adobe .pdf 

file.GTREndUserExemption@dtcc.com .

The ANNUAL END-USER CLEARING EXCEPTION/EXEMPTION FORM provides information 

required by the CFTC, as well as contact information for the Electing Counterparty. 

Until all required information is provided, the Annual End-User Clearing Exception/Exemption Form will not be 

considered complete. 

The information requested on the Annual End-User Clearing Exception/Exemption Form is as follows: 

A) ENTITY INFORMATION

1. Full legal name of the Electing Counterparty; 

2. DTCC Account Number – this is optional. If the Electing Counterparty has a DTCC Account Number, it 

shouldmay be provided; and 

3. LEI/GMEI - each Electing Counterparty must provide this number as a LEI/GMEI is required pursuant to 

Part 45 of the CFTC’s regulations. If the Electing Counterparty is an individual Person, and ineligible to 

register for a LEI/GMEI, then “Individual” may be entered in this field. 
1 Counterparties electing the relief from clearing for eligible treasury affiliates provided in CFTC Staff No-Action Letter 

14-144 will also use the Annual End-User Clearing Exception Form. The full requirements for electing the treasury affiliate relief 

can be found at: http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-144.pdf. 

B) PRIMARY CONTACT INFORMATION

1. Name - the name of the person responsible for filing the Annual formEnd-User Clearing 

Exception/Exemption Form . This information is needed so DDR can contact the person identified if there 

is an issue with the form, if information is not provided or if DDR has questions aroundabout the information 

that is provided. 

2. Contact phone. 

3. Contact e-mail. 

C) REQUIRED REGULATORY INFORMATION

1. Financial Entity Status – Pursuant to CFTC Regulation §50.50(b), the Electing Counterparty must disclose 

whether it is a Financial Entity and, if so, what type of Financial Entity. The inclusion of an Eligible Treasury 

Affiliate section is provided pursuant to conditions of the Treasury Affiliate No-Action Relief. The inclusion 

of an Exempt Cooperative section is also provided pursuant to conditions of the Exempt Cooperative NoAction Relief.In particular, the form includes the following types of Financial Entities: an insured small 

bank, savings association, farm credit system institution or credit union; a captive finance company; an 

exempt cooperative; an eligible treasury affiliate; a bank holding company or savings and loan holding 

company; and a community development financial institution. 

1.2.Hedge or Mitigate Commercial Risk – This section is required to be checked when the selected Financial 

Entity Status is any other than Exempt Cooperative or Eligible Treasury Affiliate. 

2.3.Eligible Treasury Affiliate Relief - Consistent with theCFTC requirements of CFTC Staff No-Action Letter 

14-144,, this section is required to be checked to indicate whether the Reporting CounterpartyEntity has a 

reasonable basis to believe that the Electing Counterparty meets the General conditions contained in CFTC 

Staff No-Action Letter No. 14-144. 

3.4. Exempt Cooperative - Consistent with the requirements of CFTC Regulation §50.51, this section is required 

to be checked to indicate whether the Reporting CounterpartyEntity has a reasonable basis to believe that the 

Electing Counterparty will only elect the cooperative exemption for: 

 swaps entered into with a member of the exempt cooperative in connection with

 originating a loan or loans for that member, which satisfies the requirements of CFTC 

Regulation §1.3(ggg)(5)(i)-(iii); or 

 swaps that hedge or mitigate commercial risk related to loans to or swaps with 

members (as such swaps are described above). 

4.5.Financial Obligations – Pursuant to CFTC Regulation §50.50(b), this section is required to be checked to 

indicate how the Electing Counterparty must indicate how it generally meets its financial obligations 

associated with entering into non-cleared swaps. At least one of the choices must be checked, but more 

than one choice may be checked. Additionally, the Electing Counterparty has the option of providing 

information regarding the “other” methods of meeting financial obligations. 
5.6.Issuer of Securities – Consistent with CFTC requirements, this section is required to be checked to indicate 

whether the Electing Counterparty is an issuer of securities, yes or no. If the Electing Counterparty is an 

issuer of securities, then this section should also indicate whether the Electing Counterparty must check the 

box to indicate that theCounterparty’s appropriate committee of the board of directors (or equivalent body) 

has reviewed and approved the decision to enter into swaps that are not cleared. 

D) SIGNATURE BLOCK

The following information about the person completing the Annual End-User Clearing 

Exception/Exemption Form is required: 

1. Signature – physical/wet or electronic. 

2. Name of the signatory.

3.2.Title of the signatory. 

4.3. Date executed and submitted. 

E) ANNUAL FORM – DDR PROCESS

Once the Electing Counterparty has returned the annual form, DDR will perform the following processes: 

1. Each submitted annual form will be reviewed for completeness. If any required field or question is 

left blank, DDR will communicate to the contact person that the form is incomplete and will need to 

be completed fully before processing.

needs to be completed fully. 

1. Once the annual form is complete, DDR will review the information provided and will discuss any 

questions with the contact person. 

2. Once the review by DDR is completed, an e-mail will be sent to the contact person confirming that 

the form has been filed, and the date on which the filing was completed. 

2. DDR will maintain a tracking spreadsheet showing the Reporting Entity name, the Electing 

Counterparty name, the LEI/GMEI, for each and the date on which the verifiedcompleted annual form 

was filed. 

3. DDR will create a report showing: 1) allReporting Entities and Electing Counterparties to swaps that 

have elected the End-User Exception, and 2) each Electing Counterparty that has providedfor which a 

valid Annual End-User Clearing Exception/Exemption Form. or a Swap-by- Swap Form has been 

submitted. The report will be made available to the CFTC on a weekly basis.

3. DDR will track the date on which the Annual End-User Clearing Exception Form is completed, and 

notify the Electing Counterparty when the next Annual End-User Clearing Exception Form needs to 

be filed. 

STEP 3: SWAP-BY-SWAP ELECTIONS (FOR REPORTING COUNTERPARTIES ONLY)

CFTC Regulation §43.4(b) requires that counterpartiesthe Reporting Entity indicate on real time messages that the 

End-User Exception has been elected. There is no requirement to identify the party claiming exception or the type 

of exemption being claimed, on real time messages. A True/False flag is provided on the real time message for 

counterparties to indicate that the clearing exception is elected and the flag can exist on either party block. 

<!-- This indicates Clearing Exception has been invoked -->

<endUserException>true</endUserException> 

Applicable message types Real-Time RT-PET*
RT-PET-Confirm*

*If a true/false flag is used on combination messages, firms would need to update the position with the name of the

party claiming clearing exception to be compliant with the CFTC rules. The recommendation is that this flag should

only be set to “True” on Real Time messages.

CFTC Regulation §50.5045.3 requires indication of the the Reporting Entity to the swap to report the election of the 

End-User Exception, the type of clearing exception and identification of the Electing Counterparty, which refers to 

the counterparty(s) making the election on a swap-by-. The Reporting Entity to the swap basis. This is done can 

indicate the Electing Counterparty by including a related party reference with the role of 

‘ClearingExceptionParty’,“ClearingExceptionParty”, or “Cooperative” as well as one of the standard identifiers for 

the party claiming the exception or exemption. 

DDR will accept the message from its clients and derive the “Clearing Exception Type” field based on the on the 

role provided for the related party reference below shouldas follows. 

a. The “Clearing Exception Type” field will be populated on the related party block of the non-claiming party, 

and reference the Electing Counterparty as the related party.with a value of “End-User” when:

//partyTradeInformation/relatedParty[role="ClearingExceptionParty"] 

OR 

//tradeHeader/partyTradeInformation/endUserException/text() - has a value of ‘true’ 

Please note that the Part 43 real time message with the enduserexception flag set to true only indicates that the 

exemption is being elected, without identifying the counterparty making the election. In order to satisfy the Part 45 

requirement that the reporting entity must identify the counterparty that is electing the end user exemption, the 

reporting entity must also send in a PET message identifying the counterparty electing the end user exception. 

b. The “Clearing Exception Type” field will be populated with a value of “Cooperative” when: 

//partyTradeInformation/relatedParty[role=”Cooperative”] 

A) FpML 

For example, if the non-Reporting Party is The related party reference below should be populated on the related 

party block of the Reporting Entity, and reference the Electing Counterparty claiming the as the related party. 

The role should be specified as “ClearingExceptionParty” if the clearing exception type is “End-User”; or 

“Cooperative” if the clearing exception type is “Cooperative””. 

Example 1: 

Counterparty A claiming an End-User exception: 

For example, if the non-Reporting Entity is the Electing Counterparty, then the party reference should be 

included on the Reporting Party’sEntity’s related party block with reference to the non-Reporting PartyEntity. 

<!-- This indicates Clearing Exception has been invoked for Counterparty A-->

<relatedParty> 
<partyReference href="CounterpartyA"/> 

<role>ClearingExceptionParty</role> 

<!—This role indicates the value of “End-user” should be auto-populated by DDR into the clearing 

exception type field-->

</relatedParty> 

<!-- Prefix and Value for Counterparty A -->

<party id="CounterpartyA"> 

<partyId partyIdScheme="http://www.dtcc.com/coding-scheme/party-id">00001111</partyId> 
DTCC Public (White) (White)

Example 2: 

CounterParty A claiming a Cooperative exemption: 

<!-- This indicates Clearing Exception has been invoked for Counterparty A-->

<relatedParty> 

<partyReference href="CounterpartyA"/> 

<role>Cooperative</role> 

<!—This role indicates the value of “Cooperative” should be auto-populated by DDR into the 

clearing exception type field-->

</relatedParty> 

<!-- Prefix and Value for Counterparty A -->

<party id="CounterpartyA"> 

<partyId partyIdScheme="http://www.dtcc.com/coding-scheme/party-id">00001111</partyId> 

Applicable Message Types RT* 

PET 

RT-PET* 

Confirm 

PET-Confirm 

RT-PET-Confirm* 

Snapshot 

*If the RT message or any of the RT combination messages are sent in with the indication of the party 

claiming exception as opposed to the true/false flag described above, the DDR will still disseminate a 

true/false indicator publicly.

B) .CSV 

Clearing Exception or Exemption Party Prefix (Conditional) Prefix of the party claiming End-User 

Exception 

Clearing Exception or Exemption Party Value “true” or “false” or Party ID Value of the party 

claiming End-User Exception. The Clearing 

Exception Party Prefix will be applicable only 

when Party ID value is provided. 

Clearing Exception or Exemption Type “End-User” or 

“Cooperative” 

While the Clearing Exception Type field is auto-populated by DDR for FpML submissions based on the role 

provided in the FpML message, participants should submit the clearing exception or exemption type field 

with one of the appropriate values selected when submitting using CSV. 
8

DTCC Public (White) (White)

In case of both CSV and FPML – if the submission is done on behalf of one party – the Clearing Exception 

party information will be applied only on that side of the position. 

If the submission is done on behalf of both parties – the Clearing Exception party information will be applied 

on both sides of the position. 
9

DTCC Public (White) (White)

ANNUAL END-USER CLEARING 

EXCEPTION / EXEMPTION FORM 

This form is being provided to satisfy the Electing Counterparty’s annual reporting requirements under 

CFTC Regulations 50.50(b), 50.51(c) or applicable CFTC Staff No-Action Letters 14-144, 16-01 and 16-02. 

ELECTING COUNTERPARTY INFORMATION

Full Legal Name: ___________________________________

DTCC Account Number (if applicable):):__________________

 LEI/GMEI::______________________

__

PRIMARY CONTACT INFORMATION

Name: 

Name: ____________________________________________________________________ 

Contact Phone: ____________________________ E-mail::_______________________

FINANCIAL ENTITY STATUS

The Electing Counterparty is: (one must be checked) 

☐ Not a Financial Entity, as defined in Section 2(h)(7)(C)(i) of the Commodity Exchange Act 

A Person

☐ An Insured Small Bank, Savings Association, Farm Credit System Institution or EntityCredit Union

exempted under CFTC Regulation 50.50(d)1, or CFTC Staff No-Action Letters 16-01 or 16-022. 

☐ A Captive Finance Company excepted under Section 2(h)(7)(C)(iii) of the Commodity Exchange Act 

☐ An Eligible Treasury Affiliate-Agent Entity excepted under Section 2(h)(7)(D) of the Commodity 

Exchange Act 

☐ A Cooperative exempted under CFTC Regulation §50.51(a) 

☐ An Eligible Treasury Affiliate meeting the conditions of the No-Action Relief issued by the CFTC’s Division 

of ClearingCFTC Letter No. 14-144 

☐ A Bank Holding Company or Savings and Risk on November 26, 2014 (CFTC Letter No. 14-144)Loan 

Holding Company meeting the conditions of CFTC Letter No. 16-01

Consistent with the requirements of Section 2(h)(7)(A)(ii) of the Commodity Exchange Act and CFTC Regulation 

50.50(c), ☐ A Community Development Financial Institution meeting the conditions of CFTC Letter 

No. 16-02 

HEDGE OR MITIGATE COMMERCIAL RISK 

(does not apply to Cooperative Exemption or Eligible Treasury Affiliate Relief)
10

DTCC Public (White) (White)

☐ I certify that the Electing Counterparty will only elect the end-user exception for swaps that hedge or 

mitigate commercial risk. as described in Section 2(h)(7)(A)(ii) of the Commodity Exchange Act and 

CFTC Regulation 50.50(c).

Consistent with the requirements of CFTC Staff No-Action Letter 14-144, 

ELIGIBLE TREASURY AFFILIATE RELIEF 

☐ I certify that the Electing Counterparty meets the General conditions contained in CFTC Staff No-Action 

Letter No. 14-144. 

1 An Insured Small Bank, Savings Association, Farm Credit System Institution or Credit Union which meets the 

requirements of CFTC Regulation 50.50(d) shall be exempt from the definition of “financial entity”. 

2 CFTC Staff No-Action Letters 16-01 and 16-02 were issued by the CFTC’s Division of Clearing and Risk on 

January 8, 2016. CFTC 

Letter No. 16-01 provides relief from the swap clearing requirement for certain bank holding companies and 

savings and loan holding companies. CFTC Letter No. 16-02 provides relief from the swap clearing requirement 

for certain community development financial institutions. 

Consistent with the requirements of CFTC Regulation §50.51(b)(1), EXEMPT COOPERATIVE 

☐ I certify that the Electing Counterparty will only elect the cooperative exemption form for:

 swaps entered into with a member of the exempt cooperative in connection with originating a loan or 

loans for that member, which satisfies the requirements of CFTC Regulation §1.3(ggg)(5)(i)-(iii); or 

 swaps that hedge or mitigate commercial risk related to loans to or swaps with members (as such swaps 

are described above). 

FINANCIAL OBLIGATIONS

How does the Electing Counterparty generally meet its financial obligations associated with entering into 

non-cleared swaps? (Check all that apply. At least one must be checked.) 

☐ A written credit support agreement

☐ Pledged or segregated assets (including posting or receiving margin pursuant to a credit support 

agreement or otherwise) 

☐ A written guarantee from another party 

☐ The electing counterparty’s available financial resources 

☐ Means other than those described above (optional description of other means may be provided 

below) 

ISSUER OF SECURITIES

Is the Electing Counterparty an issuer of securities registered under section 12 of, or is required to file reports 

under section 15(d) of, the Securities Exchange Act of 1934?Yes
11

DTCC Public (White) (White)

☐ YES 

☐ NO 

If YES, please provide the required information below:

SEC Central Index Key Number::_____________________

☐ The appropriate committee of the board of directors (or equivalent body) has reviewed and 

approved the decision to enter into swaps that are exempt from the clearing requirement of section 

2(h)(1), and section 2(h)(8) of the Commodity Exchange Act. 

I hereby certify that the information contained in this Annual End-User Clearing Exception / Exemption 

Form is true and accurate to the best of my knowledge. 

Signature::______________________________ Date::___________________________

Name: Title:Name: ___________________ Title:___________________________