U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre
 

1155 21st Street, NW, Washington, DC 20581
 

Telephone: (202) 418-5000
 

Facsimile: (202) 418-5521
 

www.cftc.gov

Division of Market Oversight 

CFTC Letter No. 15-61
 

No-Action
 

November 9, 2015
 

Division of Market Oversight
 

Extension of Time-Limited No-Action Relief from Certain Requirements of Part 45 and 

Part 46 of the Commission’s Regulations, for Certain Swap Dealers and Major Swap 

Participants Established under the Laws of Australia, Canada, the European Union, Japan 

or Switzerland 

This letter responds to a request received by the Division of Market Oversight (the 

“Division”) of the Commodity Futures Trading Commission (the “Commission”), pursuant to 

Commission Regulation 140.99, to extend certain staff no-action relief provided in CFTC Letter 

No. 13-75 and extended under CFTC Letter No. 14-141.1 

I. Background 

On December 20, 2013 the Division issued CFTC Letter No. 13-75 to provide 

Commission-registered swap dealers (“SDs”) and major swap participants (“MSPs”) that are 

non-U.S. persons2 established under the laws of Australia, Canada, the European Union, Japan or 

Switzerland, and that are not part of an affiliated group in which the ultimate parent entity is a 

U.S. SD, U.S. MSP, U.S. bank, U.S. financial holding company or U.S. bank holding company, 

with time-limited no-action relief from requirements of the swap data reporting rules set forth at 

Part 453 and Part 464 of the Commission’s regulations (collectively, the “SDR Reporting 

Rules”). On November 24, 2014, in CFTC Letter No. 14-141, the Division extended certain of 

the relief provided in CFTC Letter No. 13-75 with respect to swaps with non-U.S. counterparties 

that are not guaranteed affiliates, or conduit affiliates, of a U.S. person. The relief that was 

extended in CFTC Letter No. 14-141 is set to expire no later than December 1, 2015. 

1 Letter from the International Swaps and Derivatives Association, Request for Division of Market Oversight Staff 

No-Action Letter Pursuant to CFTC Regulation 140.99: SDR Reporting Requirements for Cross-Border Swaps 

(August 12, 2015) (the “Request Letter”). 

2 For purposes of this letter, the term “U.S. person” has the meaning used in the Commission’s Interpretive 

Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations, 78 Fed. Reg. 45292 (July 

26, 2013) (hereinafter “Cross-Border Guidance”), and a person that is not a U.S. person is a “non-U.S. person”. For 

purposes of this letter, an SD that is a non-U.S. person is a “non-U.S. SD” and an MSP that is a non-U.S. person is a 

“non-U.S. MSP”. 

3 Swap Data Recordkeeping and Reporting Requirements, 77 Fed. Reg. 2136 (January 13, 2012). 

4 Swap Data Recordkeeping and Reporting Requirements: Pre-Enactment and Transition Swaps, 77 Fed. Reg. 35200 

(June 12, 2012). 
 

 

 

 

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As noted in the Request Letter, the Commission has not yet issued comparability 

determinations as to whether the regulatory requirements of any foreign jurisdiction are 

comparable to and as comprehensive as the applicable requirements under the Commodity 

Exchange Act and Commission regulations with respect to the SDR Reporting Rules.5 While 

review of those requests for comparability determinations that have been received by the 

Commission continues, the Division believes that it would be appropriate to provide an extension 

of the time-limited no-action relief provided in CFTC Letter No. 14-141. 

II.	 Extension of No-Action Relief 

(i)	 Based on the foregoing, and subject to clause (ii) below, the Division will not recommend 

that the Commission take an enforcement action against a non-U.S. SD or a non-U.S. 

MSP established in Australia, Canada, the European Union, Japan or Switzerland, that is 

not part of an affiliated group in which the ultimate parent entity is a U.S. SD, U.S. MSP, 

U.S. bank, U.S. financial holding company, or U.S. bank holding company, for failure to 

comply with the requirements of the SDR Reporting Rules with respect to its swaps with 

non-U.S. counterparties that are not guaranteed affiliates, or conduit affiliates,6 of a U.S. 

person, until the earlier of: (a) 30 days following the issuance of a comparability 

determination by the Commission with respect to the SDR Reporting Rules for the 

jurisdiction in which the non-U.S. SD or non-U.S. MSP is established, and (b) December 

1, 2016. 

(ii)	 The no-action relief provided in this letter does not extend to the recordkeeping 

requirements of Commission Regulations 45.2,7 45.6, 46.2 and 46.4.8 

The no-action relief provided herein is provided to certain non-U.S. SDs and non-U.S. 

MSPs, as specified herein, and does not extend to any other entities with reporting obligations 

under the SDR Reporting Rules.9 

5 The process for comparability determinations is discussed in the Cross-Border Guidance. See 78 Fed. Reg. at 

45344-45. 

6 For purposes of this letter, the terms “guaranteed affiliate” and “conduit affiliate” have the respective meanings 

used for those terms in the Cross-Border Guidance. 

7 The requirement in Commission Regulation 45.2(a)(4) that the records required to be kept by an SD or MSP 

include, without limitation, all records required by Part 23 of the Commission’s regulations, is independently 

governed by the applicability of such underlying Part 23 requirements. 

8 However, during the period of this relief, the Division will not recommend an enforcement action based on the 

failure by a non-U.S. SD or non-U.S. MSP, in the records that the non-U.S. SD or non-U.S. MSP is required to 

maintain pursuant to Commission Regulations 45.2, 45.6, 46.2 and 46.4, to identify a non-U.S. counterparty to a 

swap by means of a legal entity identifier, or “LEI”, issued pursuant to Part 45 of the Commission’s regulations, if: 

(i) the counterparty’s LEI is not publicly available, (ii) the counterparty has not already provided its LEI to the nonU.S. SD or non-U.S. MSP, and (iii) the counterparty does not provide its LEI to the non-U.S. SD or non-U.S. MSP 

in connection with the swap transaction, provided that the non-U.S. SD or non-U.S. MSP generates a substitute 

counterparty identifier for such counterparty and utilizes such identifier in the records that the non-U.S. SD or nonU.S. MSP is required to maintain pursuant to Commission Regulations 45.2, 45.6, 46.2 and 46.4. 

9 For example, the Part 45 reporting obligations of a swap execution facility (“SEF”) or designated contract market 

(“DCM”), with respect to swaps executed on or pursuant to the rules of such SEF or DCM, are not affected by the 

no-action relief provided herein. 
 

 

 

 

 

 

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This letter, and the no-action position taken herein, represent the views of the Division 

only, and do not necessarily represent the position or views of the Commission or of any other 

division or office of the Commission’s staff. The no-action position taken herein does not 

excuse affected persons from compliance with any other applicable requirements of the 

Commodity Exchange Act or the regulations thereunder. As with all no-action letters, the 

Division retains the authority to condition further, modify, suspend, terminate or otherwise 

restrict the terms of the no-action relief provided herein, in its discretion. 

Should you have any questions concerning this correspondence, please contact Daniel 

Bucsa, Deputy Director, Division of Market Oversight, at (202) 418-5435 or Richard Mo, 

Attorney Advisor, Division of Market Oversight, at (202) 418-7637. 

Sincerely, 

Vincent A. McGonagle 

Director 

Division of Market Oversight