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. 14-141

No-Action

November 24, 2014

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

and Switzerland

This letter responds to requests 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 no-action relief provided in CFTC Staff Letter 

No. 13-75 (the “Request Letters”).1

I. Background

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

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

non-U.S. persons2established under the laws of Australia, Canada, the European Union, Japan

and 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 certain requirements of the swap data reporting 

rules set forth at Part 453and Part 464of the Commission’s regulations (collectively, the “SDR 

Reporting Rules”). The relief in CFTC Staff Letter No. 13-75 that remains effective, set forth in 

section II(i) of the letter, is set to expire no later than December 1, 2014. 

 

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

(October 10, 2014); Letter from the Institute of International Bankers, Request for Extension of No-Action Letter 

13-75 (October 24, 2014).

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.)
Page 2

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

determinations5 with respect to the SDR Reporting Rules for any jurisdiction. Accordingly, the 

Division believes that it would be appropriate to provide an extension of certain of the timelimited no-action relief provided in CFTC Staff Letter No. 13-75.

II. Extension of No-Action Relief

Based on the foregoing, 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 Part 45 and Part 46 

of the Commission’s regulations 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, 2015.

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

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 

 

5

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

45344.

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 of Commission Regulation 45.2(a)(4)—that an SD or MSP keep records that 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 to maintain records identifying 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 non-U.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 as a condition of relying on such relief.

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.
Page 3

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 Stuart Armstrong, Special 

Counsel, Division of Market Oversight, at (202) 418-5095.

Sincerely,

_______________________________ 

 Vincent A. McGonagle 

Director 

Division of Market Oversight