Appendix A®
Detailed Instructions on Submitting Legacy Form 102%4

Special account designation and identification.

When a special account is reported for the first time, the futures commission merchant, clearing
member, or foreign broker shall identify the account to the Commission on Legacy Form 102, in
the form and manner specified in section D of this no-action letter, showing the information in
paragraphs (a) through (f) of this Appendix A.

(a) Special account designator. A unique identifier for the account, provided, that the same
designator is assigned for option and futures reporting, and the designator is not changed or
assigned to another account without prior approval of the Commission or its designee.

(b) Special account identification. The name, address, business phone, and for individuals, the
person’s job title and employer for the following:

(1) The person originating the account, if the special account is a house omnibus or customer
omnibus account; or

(2) The person (i.¢., individual, corporation, partnership, etc.) who owns the special account, if
such person (or an employee or officer) also controls the trading of the special account. And, in
addition:

(i) The registration status of the person as a commodity trading advisor or a securities
investment advisor;

(ii) The legal organization of the person and the person’s principal business or occupation;

(iii) Account numbers and account names included in the special account, if different than
supplied in paragraph (b)(2) of this Appendix A;

(iv) The name and location of all persons not identified in paragraph (b)(2) of this Appendix A
having a ten percent or more financial interest in the special account, indicating those having
discretionary trading over the account; and

(v) For special accounts with five or fewer persons having trading authority, the names and
locations of all persons with trading authority that have not been identified in paragraphs (b)(2)
or (b)(2)(iv) of this Appendix A; or

(3) The account controller, if trading of the special account is controlled by a person or legal
entity who is an independent account controller for the account owners as defined in § 150.1(e)
of the Commission’s regulations. And, in addition:

(i) The registration status of the person as a commodity trading advisor or a securities
investment advisor;

(ii) [Reserved]

%3 See the link below to the Commission’s website for general information on submitting forms to the
Commission:

hitp/Awww.cfic.2ow/Forms/index htm

4 See the link below to the Commission’s website for a copy of Legacy Form 102:

http:/Avww.cfte.gov/Porms/ssLINK /efteform ] 02,

14



This no-action letter replaces the February 2015 CFTC NAL. The Division believes that the
following additional time-limited no-action relief is warranted:

April 27, 2016:

e Relief from electronically reporting via New Form 102A until April 27, 2016 (see
section D below);

e Relief from electronically reporting via New Form 1028 until April 27, 2016 (see
section F below); and

e Relief from electronically reporting DCM volume threshold accounts via New Form
102B until April 27, 2016 (see section G below).

September 28, 2016:

e Relief from electronically reporting via New Form 40/40S and New Form 71 until
September 28, 2016 (see section I below).

February 13, 2017:

e Relief from electronically reporting SEF volume threshold accounts via New Form
102B until February 13, 2017 (see section H below).

As further described below, among other conditions, the no-action relief described above is
subject to Reporting Parties continuing to report to the Commission via Legacy Form 102, the
Legacy 1028 Filing, Legacy Form 40 and the Legacy 408 Filing in accordance with the reporting
requirements in place prior to the implementation of the OCR Final Rule.

Notwithstanding the no-action relief provided herein, the Division is not providing relief for the
additional recordkeeping obligations imposed by regulation § 18.05, as amended by the OCR
Final Rule.!° The compliance date under the amended regulation for these obligations occurred
on August 15, 2014.

The remainder of this no-action letter describes the time-limited no-action relief in more detail.

D. Conditional No-action Relief from Submitting Information via New Form 102A
Until 11:59 p.m. Eastern Time on April 27, 2016

Summary of Relief Granted: The Division is providing relief from electronically reporting via
New Form 102A until 11:59 p.m. Eastern Time on April 27, 2016, provided that Reporting
Parties comply with the reporting practice that was in place prior to the implementation of the
OCR Final Rule, by reporting via Legacy Form 102 (as such term is defined below) until 11:59
p.m. Eastern Time on April 27, 2016, or such earlier date that the Division may determine.

The Division believes that time-limited no-action relief is warranted for certain reporting |
obligations under Part 17 of the Commission’s regulations that were implemented by the OCR |

17 CFR §18.05.


(6) The following information if a trader makes transactions or holds positions in a futures or
option contract where such transactions or positions normally represent a substitute for
transactions to be made or positions to be taken at a later time in a physical marketing channel
and the transactions or positions are economically appropriate to the reduction of risks in the
conduct and management of a commercial enterprise:

(i) Commercial activity associated with use of the option or futures market (¢.g., production,
merchandising or processing of a cash commodity, asset/liability risk management by depository
institutions, security portfolio risk management, etc.)

(ii) Physical commodities underlying use of the futures or option markets.

(iii) Futures or option markets used.

18



The Division believes that time-limited no-action relief is warranted for certain reporting
obligations under Part 17 of the Commission’s regulations that were implemented by the OCR
Final Rule. In particular, Division staff is aware of practical limitations regarding the reportable
trading volume level, as defined in regulation § 15.04, for SEF Volume Threshold Accounts
reported via New Form 102B. In light of these concerns regarding § 15.04 as it applies to SEFs,
the Division believes that no-action relief extending for a period of two years is warranted with
respect to this reporting obligation. Subject to the conditions in sections D (102A Submission)
and F (102S Submission) above, the Division will not recommend that the Commission
commence an enforcement action against a Reporting Party for failure to report SEF Volume
Threshold Accounts via New Form 102B, as required by Part 17, until 11:59 p.m, Eastern Time
on February 13, 2017.4

The no-action relief described in this section H is also subject to the following condition:

e Reporting Party Cooperation with ODT Staff to Test and Implement Electronic Reporting
Methods

o Prior to the implementation of electronic reporting of SEF Volume Threshold
Accounts via New Form 102B on February 13, 2017, Reporting Parties are
expected to cooperate with ODT staff as requested to test and implement any
information technology standards or systems associated with the OCR Final Rule
as contemplated in the rulemaking.”> During this testing period leading up to the
February 13, 2017 implementation, Reporting Parties are expected to provide all
test data or form filings requested by ODT staff, in the form and manner described
on the OCR testing page of the CFTC website.”°

I. Conditional No-action Relief from Submitting Information via New Form 40/408
and New Form 71 Until 11:59 p.m. Eastern Time on September 28, 2016

Summary of Relief Granted: The Division is providing relief from electronically reporting via
New Form 40/408 and New Form 71 until 11:59 p.m. Eastern Time on September 28, 2016,
provided that Reporting Parties comply with the Form 40/40S reporting practice that was in
place prior to the implementation of the OCR Final Rule, by reporting via Legacy Form 40 and
the Legacy 408 Filing (as such terms are defined below) until 11:59 p.m. Eastern Time on
September 28, 2016, or such earlier date that the Division may determine.

The Division believes that time-limited no-action relief is warranted for certain additional
reporting obligations under Parts 17 and 18 of the Commission’s regulations that were

>4 The reporting requirements with respect to New Form 102B were implemented by the OCR Final Rule,
and arise under regulations §§ 17.01(b), 17.01(d), 17.01(e) and 17.02(c). 17 CFR §§ 17.01(b), 17.01(d),
17.01(e) and 17.02(c). As noted above, New Form 102B is an entirely new form introduced by the OCR
Final Rule, and as a result there is no legacy Form 102B reporting method.

>> OCR Final Rule at 69188-69189,

6 See http:/Avww.clic.zowForms/OCR/Testing

10



action letter since the previous filing, the futures commission merchant, clearing
member, or foreign broker must file an updated Legacy Form 102 with the
Commission within three business days after such change occurs,

o Exclusively self-cleared contracts. Unless determined otherwise by the
Commission, reporting markets that list exclusively self-cleared contracts must
submit and update Legacy Form 102, as the requirement to submit and update
Legacy Form 102 applies to trading in such contracts by all clearing members, on
behalf of all clearing members.

o The Legacy Form 102 reporting practice described above and on Appendix A is
referred to herein as the “Legacy Form 102 reporting practice.”

The no-action relief described in this section D is also subject to the following condition in
section E:

E. Testing of Electronic Reporting Methods

Prior to the implementation of electronic reporting on the dates described in this no-action letter,
Reporting Parties are expected to cooperate with staff of the Commission’s Office of Data and
Technology (“ODT”) as requested to test and implement any information technology standards
or systems associated with the OCR Final Rule as contemplated in that rulemaking." During

_ this testing period, Reporting Parties are expected to provide “Production Grade” test data’® and
any other form filings requested by ODT staff,"° in the form and manner described on the OCR
testing page of the CFTC website.'” The Division advises Reporting Parties to check the OCR
testing page on a regular basis to review testing requirements.

F. Conditional No-action Relief from Submitting Information via New Form 102S
Until 11:59 p.m. Eastern Time on April 27, 2016

OCR Final Rule at 69188-69189.

'S «Production Grade” data means (a) in the context of New Form 102A testing, data that, to the extent it
overlaps, is identical to data submitted pursuant to Part 17 of the Commission’s regulations (Large Trader
data and Trader Capture Report data); (b) in the context of New Form 102S testing, data that, to the extent
it overlaps, is identical to data submitted pursuant to Part 20 of the Commission’s regulations
(Commodity Swaps data); and (c) in the context of New Form 102B testing, data that is equivalent to the
data that the Commission will receive following the implementation of electronic reporting on New Form
102B. Production Grade data will be used by the Commission only for testing purposes.

‘6 The Commission will protect proprietary information consistent with the Freedom of Information Act,
5 U.S.C. 552, and 17 CFR part 145, “Commission Records and Information.” In addition, § 8(a)(1) of the
Commodity Exchange Act, 7 U.S.C. §12(a)(1), strictly prohibits the Commission, unless specifically
authorized by the Act, from making public “data and information that would separately disclose the
business transactions or market positions of any person and trade secrets or names of customers.” The
Commission is also required to protect certain information contained in a government system of records
according to the Privacy Act of 1974, 5 U.S.C. 552a.

"” See http://www. cfic.gov/Forms/OCR



Final Rule. Subject to the conditions below, the Division will not recommend that the
Commission commence an enforcement action against a Reporting Party for failure to report via
New Form 102A, as required by Part 17, "until 11:59 p.m. Eastern Time on April 27, 2016.

The no-action relief described in this section D is subject to Reporting Parties reporting via
Legacy Form 102 until 11:59 p.m. Eastern Time on April 27, 2016, or such earlier date that the
Division may determine. Such reporting must be consistent in all respects with the time, form
and manner of the Legacy Form 102 reporting practice. In particular, the no-action relief
described in this section D is subject to Reporting Parties reporting via Legacy Form 102 in
accordance with the following conditions and Appendix A hereto:

e Report via Legacy Form 102

o As used herein, “Legacy Form 102” refers to the Form 102 required prior to the
implementation of the OCR Final Rule, which is available on the Commission’s
website.'> See Appendix A hereto for additional instructions for completing
Legacy Form 102 in accordance with the legacy reporting practice.

oc Within three business days of the first day that a special account is reported to the
Commission pursuant to § 17.00(a) by a futures commission merchant, clearing
member, or foreign broker, in accordance with instructions by the Commission or
its designee, such party must submit Legacy Form 102 to the Commission in
accordance with instructions by the Commission or its designee, showing the
information in paragraphs (a) through (f) of Appendix A hereto.

o Oncall by the Commission or its designee, a futures commission merchant,
clearing member, or foreign broker must identify the type of special account
specified by items 1(a), 1(b), or 1(c) of Legacy Form 102, and the name and
location of the person to be identified in item 1(d) on Legacy Form 102, and
submit such information by facsimile or telephone, in accordance with
instructions by the Commission or its designee, on the same day that the special
account in question is first reported to the Commission by such party.

o Legacy Form 102 updates. If, at the time an account is in special account status
and a Legacy Form 102 filed by a futures commission merchant, clearing
member, or foreign broker is then no longer accurate because there has been a
change in the information required under paragraph (b) of Appendix A to this no-

"l See 17 CER §§ 17.01(a), 17.01(d), 17.01(e) and 17.02(b).

When submitting either Legacy Form 102 or New Form 102A, Reporting Parties should report special
accounts pursuant to Commission regulation § 17.00 and on the applicable 102 form on a disaggregated
basis, if the parties have been so instructed by the Commission or its designee. All Reporting Parties
should provide position reporting on the applicable 102 form based on control of a special account. As an
example, if a special account is controlled by one Reporting Party but owned by another, such account
should be reported only by the Reporting Party that controls the special account. See discussion in OCR
Final Rule, 78 FR at 69184,

8 See the link below to the Commission’s website for a copy of Legacy Form 102:

htipy//www.ctic.gow/Forms/ssLINK/e



in addition to the data fields required on New Form 1028, the name, address, and contact
information of the reportable counterparty. ODT staff will provide additional information on the
OCR testing page regarding the time and manner for reporting such counterparty information
during the testing period for New Form 1028S.

G. Conditional No-action Relief from Submitting Information Regarding DCM
Volume Threshold Accounts via New Form 102B Until 11:59 p.m. Eastern Time on
April 27, 2016

Summary of Relief Granted: The Division is providing relief from electronically reporting DCM
Volume Threshold Accounts via New Form 102B until 11:59 p.m. Eastern Time on April 27,
2016, provided that Reporting Parties comply with the reporting practice that was in place prior
to the implementation of the OCR Final Rule, by reporting via Legacy Form 102 and the Legacy
1028 Filing until 11:59 p.m. Eastern Time on April 27, 2016, or such earlier date that the
Division may determine. a

The Division believes that time-limited no-action relief is warranted for certain reporting
obligations under Part 17 of the Commission’s regulations that were implemented by the OCR
Final Rule, Subject to the conditions in sections D (102A Submission), E (Testing
Requirements) and F (1028 Submission) above, the Division will not recommend that the
Commission commence an enforcement action against a Reporting Party for failure to report
DCM Volume Threshold Accounts via New Form 102B, as required by Part 17, until 11:59 p.m.
Eastern Time on April 27, 2016.”

H. Conditional No-action Relief from Submitting Information Regarding SEF Volume
Threshold Accounts via New Form 102B Until 11:59 p.m, Eastern Time on
February 13, 2017

Summary of Relief Granted: The Division is providing relief from electronically reporting SEF
Volume Threshold Accounts via New Form 102B until 11:59 p.m. Eastern Time on February 13,
2017, provided that Reporting Parties comply with the reporting practice that was in place prior
to the implementation of the OCR Final Rule, by reporting via Legacy Form 102 and the Legacy
1028 Filing until 11:59 p.m. Eastern Time on April 27, 2016, or such earlier date that the
Division may determine. 23

> As noted in sections D and F above, the transition from Legacy Form 102 and the Legacy Form 1028
filing to New Form 102A and New Form 102S will occur at 11:59 p.m. eastern time on April 27, 2016, or
such earlier date that the Division may determine.

» The reporting requirements with respect to New Form 102B were implemented by the OCR Final Rule,
and arise under regulations §§ 17.01(b), 17.01(d), 17.01(e) and 17.02(c). 17 CFR §§ 17.01(b), 17.01(d),
17.01(e) and 17,02(c), As noted above, New Form 102B is an entirely new form introduced by the OCR
Final Rule, and as a result there is no legacy Form 102B reporting method.

> As noted in sections D and F above, the transition from Legacy Form 102 and the Legacy Form 102S
filing to New Form 102A and New Form 1028 will occur at 11:59 p.m, eastern time on April 27, 2016, or
such earlier date that the Division may determine.



U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Telephone: (202) 418-5000
Facsimile: (202) 418-5521

Division of
Market Oversight

CFTC Letter No. 15-52
No-Action

September 28, 2015

Division of Market Oversight

Conditional Time-Limited No-Action Relief from
Certain Ownership and Control (OCR) Data Reporting Requirements
Under Parts 17, 18 and 20 of the Commission’s Regulations:
Replaces CFTC No-Action Letter No. 15-03

September 28, 2015

Allison Lurton

Senior Vice President and General Counsel
The Futures Industry Association.

2001 Pennsylvania Avenue NW

Suite 600

Washington, DC 20006

Dear Ms. Lurton:

This letter is in response to your request dated September 21, 2015 (the “September 2015 FIA
Letter”), to the Division of Market Oversight (“DMO” or “Division”) of the Commodity Futures
Trading Commission (“Commission”), on behalf of the members of the Futures Industry
Association (“FIA”) that are required to submit certain reports under Parts 17, 18 and 20 of the
Commission’s regulations. In the September 2015 FIA Letter, you requested no-action relief
from certain data reporting requirements of Parts 17, 18 and 20 of the Commission’s regulations
that were implemented pursuant to the OCR Final Rule (as defined below). You requested such
relief “to ensure a smooth transition to the OCR Rule and increase the reliability and consistency
of the OCR data provided to the CFTC.”

In response to the September 2015 FIA Letter, the Division is providing additional time-limited
no-action relief from certain reporting obligations implemented by the Ownership and Control



rulemaking.’ During this testing period leading up to the September 28, 2016
implementation, Reporting Parties are expected to provide all test data or form
filings requested by ODT staff, in the form and manner described on the OCR
testing page of the CFTC website.!

For the avoidance of doubt, the no-action relief and conditions described in this section I with
respect to New Form 40 also apply to the obligation to submit New Form 40S pursuant to
regulation § 20.5(b).*? As a result, all references in this section I to New Form 40 and Legacy
Form 40, including the no-action relief and conditions described in this section I, shall apply
equally to New Form 408 and the legacy 40S filing (the “Legacy 40S Filing”) required by
regulation § 20.5(b). The reporting practice by which parties submit the Legacy 408 Filing in
accordance with regulation § 20.5(b) is referred to herein as the “Legacy 40S reporting practice.”

J. Conclusion
The no-action relief provided in this no-action letter is time-limited, and ends in all respects as

follows:

e The no-action relief provided in section D (102A Submission) of this no-action letter
ends at 11:59 p.m. Eastern Time on April 27, 2016;

e The no-action relief provided in section F (102S Submission) of this no-action letter ends
at 11:59 p.m. Eastern Time on April 27, 2016,

e The no-action relief provided in section G (102B Submission- DCM Volume Threshold
Accounts) of this no-action letter ends at 11:59 p.m. Eastern Time on April 27, 2016,

e The no-action relief provided in section H (102B Submission- SEF Volume Threshold
Accounts) of this no-action letter ends at 11:59 p.m. Eastern Time on February 13,
2017; and

e The no-action relief provided in section I (40/40S and 71 Submission) of this no-action
letter ends at 11:59 p.m. Eastern Time on September 28, 2016.

%° OCR Final Rule at 69188-69189,
31 See http:/Avww.cfic.gov/Forms/OCR/Testing
217 CER § 20.5(b).

12



implemented by the OCR Final Rule. Subject to the conditions below, the Division will not
recommend that the Commission commence an enforcement action against a Reporting Trader”
for failure to report via New Form 40, as required by Part 18. In addition, the Division will not
recommend that the Commission commence an enforcement action against a Reporting Party for
failure to report via New Form 71, as required by Part 17.8 The no-action relief with respect to
New Form 40 and New Form 71 described in this paragraph ends in each case at 11:59 p.m.
Eastern Time on September 28, 2016.

The no-action relief described above with respect to New Form 40 is subject to Reporting
Traders reporting via Legacy Form 40 until 11:59 p.m. Eastern Time on September 28, 2016, or
such earlier date that the Division may determine. Such reporting must be consistent in all
respects with the time, form and manner of the Legacy Form 40 reporting practice. In particular,
this no-action relief is subject to Reporting Traders reporting via Legacy Form 40 in accordance
with the following condition:

e Report via Legacy Form 40

o Asused herein, “Legacy Form 40” refers to the Form 40 required prior to the
implementation of the OCR Final Rule, which is available on the Commission’s
website.” See Appendix B hereto for additional instructions for completing
Legacy Form 40 in accordance with the legacy reporting practice.

o Every trader who holds or controls a reportable futures and option position must,
after a special call upon such trader by the Commission or its designee, file with
the Commission a “Statement of Reporting Trader” on Legacy Form 40, at such
time and place as directed in the call.

o The Legacy Form 40 reporting practice described above and on Appendix B is
referred to herein as the “Legacy Form 40 reporting practice.”

The no-action relief described in this section is also subject to the following condition:

e Reporting Party Cooperation with ODT Staff to Test and Implement Electronic Reporting
Methods

o Prior to the implementation of electronic reporting via New Form 40 and New
Form 71 on September 28, 2016, Reporting Parties are expected to cooperate with
ODT staff as requested to test and implement any information technology
standards or systems associated with the OCR Final Rule as contemplated in the

27 As used herein, “Reporting Traders” means parties that are obligated to report pursuant to the OCR
Final Rule on New Form 40/408. See regulations §§18.04 and 20.5. 17 CFR §§ 18.04 and 20.5,

8 The reporting requirements with respect to New Form 40 and New Form 71 were implemented by the
OCR Final Rule, and arise under regulations §§ 18.04 (New Form 40), 17.01(c), and 17,01(e) (New Form
71). 17 CFR §§ 18.04, 17.01(c), and 17.01(e). As noted above, New Form 71 is an entirely new form
introduced by the OCR Final Rule, and as a result there is no legacy Form 71 reporting method.

® See the link below to the Commission’s website for a copy of Legacy Form 40:
hittp:/Avww.cfic.gov/Forms/ssLINK/cfteform40

11



Summary of Relief Granted: The Division is providing relief from electronically reporting via
New Form 1028 until 11:59 p.m. Eastern Time on April 27, 2016, provided that Reporting
Parties comply with the reporting practice that was in place prior to the implementation of the
OCR Final Rule, by reporting via the Legacy 102S Filing (as such term is defined below) until
11:59 p.m. Eastern Time on April 27, 2016, or such earlier date that the Division may determine.

The Division believes that time-limited no-action relief is warranted for certain reporting
obligations under Part 20 of the Commission’s regulations that were implemented by the OCR
Final Rule. Subject to the conditions below, the Division will not recommend that the
Commission commence an enforcement action against a Reporting Party for failure to report via
New Form 1028, as required by Part 20, 18 until 11:59 p.m. Eastern Time on April 27, 2016.

The no-action relief described in this section F is subject to Reporting Parties reporting via the
Legacy 102S Filing until 11:59 p.m. Eastern Time on April 27, 2016, or such earlier date that the
Division may determine. Such reporting must be consistent in all respects with the time, form
and manner of the Legacy 102S reporting practice. In particular, the no-action relief described in
this section F is subject to Reporting Parties reporting via the Legacy 1028 Filing in accordance
with the following conditions:

e Report via Legacy 102S Filings

o Within three days following the first day that a counterparty consolidated account
first becomes reportable, or at such time as instructed by the Commission upon.
special call, a reporting entity’® must submit a 102S filing, which must consist of
the name, address, and contact information of the counterparty and a brief
description of the nature of such person’s paired swaps and swaptions market
activity (the “Legacy 1028 Filing”).°

o A reporting entity may submit a Legacy 102S Filing only once for each
counterparty, even if such persons at various times have multiple reportable
positions in the same or different paired swaps or swaptions. However, reporting
entities must update a Legacy 102S Filing if the information provided is no longer
accurate.

o The 1028 reporting practice described above is referred to herein as the “Legacy
1028S reporting practice.”

The no-action relief described in this section F is also subject to Reporting Parties complying
with the electronic reporting testing condition set out in section E above. Furthermore,
Reporting Parties submitting New Form 1028 during the testing period are expected to provide,

8 See 17 CER §§ 20,5(a)(1), 20.5(a)(2), 20.5(a)(4) and 20.5(a)(5).
9 See § 20.1 of the Commission’s regulations for the definition of “reporting entity.” 17 CFR § 20.1.

0 Reporting Parties should submit a Legacy 102S Filing in accordance with the specifications set forth in
the Large Trader Reporting for Physical Commodity Swaps: Division of Market Oversight Guidebook for
Part 20 Reports (as amended from time to time, the “102S Guidebook”), The current version of the 102S
Guidebook is available at the link below:

htipy//www. cite cov/uem/groups/public/@newsroom/documents/file/ltrguidebook053 | 12. pdf



You further represented that reporting parties need additional time to explain the concepts of
ownership and control to customers/counterparties.

In response to the January 2015 FIA Letter, the Division issued the February 2015 CFTC NAL,
granting time-limited no-action relief from certain reporting obligations under the OCR Final
Rule. More specifically, the February 2015 CFTC NAL, subject to certain terms and conditions,
granted no-action relief from: (a) relief from electronically reporting via New Form 102A until
September 30, 2015; (b) relief from electronically reporting via New Form 1028 until September
30, 2015; (c) relief from electronically reporting DCM volume threshold accounts via New Form
102B until September 30, 2015; (d) relief from electronically reporting SEF volume threshold
accounts via New Form 102B until February 13, 2017; and (e) relief from electronically
reporting via New Form 40/40S and New Form 71 until February 11, 2016.

C. September 2015 CFTC No-Action Letter

In the September 2015 FIA Letter, you represented that FIA and its members have taken a
number of steps to come into compliance with the OCR Final Rule, including: engaging in a
broad client outreach program to educate customers and counterparties about the OCR Final
Rule and its enhanced reporting requirements; increasing operational support to gather and verify
OCR data; and modifying internal practices to collect OCR data during the on-boarding process.
The September 2015 FIA Letter stated that, “FIA requests that Staff extend and modify the
Current Relief [as provided in the February 2015 CFTC NAL] to ensure a smooth transition to
the OCR Rule and increase the reliability and consistency of the OCR data provided to the
CFTC.”

Based on the representations provided in the September 2015 FIA Letter, and to increase the
reliability and consistency of the OCR data, the Division believes that some additional extension
of the time-limited no-action relief now in place under the February 2015 CFTC NAL is
warranted. The Division is providing additional relief to allow Reporting Parties to come into
compliance with their reporting obligations, and to enable DMO staff to consider potential
additional relief, as discussed in the introductory section above. The Division is granting no-
action relief from the requirement to report (a) via New Form 102A, New Form 102B (with
respect to DCM volume threshold accounts) and New Form 1028 until April 27, 2016, (b) via
New Form 40/408 and New Form 71 until September 28, 2016, and (c) via New Form 102B
(with respect to SEF volume threshold accounts) until February 13, 2017, in each case subject to
certain conditions more fully described below.

1. Summary of Upcoming No-Action Relief.

° ‘The January 2015 FIA Letter also stated that New Form 102B reporting requires clearing members to
aggregate instruments with the same product identifier in connection with their trading activity on both
designated contract markets (DCMs) and swap execution facilities (SEFs).’ (See the definition of
“reportable trading volume level” applicable to New Form102B reporting in regulation § 15.04, 17 CFR
§15.04,) The Letter stated that although FIA had engaged in preliminary discussions with certain SEFs
regarding setting product identifiers for swaps, product identifiers were not yet available on SEFs.


(iii) If fewer than ten accounts are under control of the independent advisor, for each account
the account number and the name and location of each person having a ten percent or more
financial interest in the account; and

(iv) On call by the Commission or its designee, for each account controlled by the independent
advisor, the account number and account name and the name and location of each person having
a ten percent or more financial interest in the account.

(c) [Reserved]

(d) Commercial use. For futures or options, commodities in which positions or transactions in
the account are associated with a commercial activity of the account owner in a related cash
commodity or activity (i.e., those considered as hedging, risk-reducing, or otherwise off-setting
with respect to the cash commodity or activity).

(e) Account executive. The name and business telephone number of the associated person of
the futures commission merchant who has solicited and is responsible for the account or, in the
case of an introduced account, the name and business telephone number of the introducing
broker who introduced the account.

(f) Reporting firms. The name and address of the futures commission merchant, clearing
member, or foreign broker carrying the account, and the name, title and business phone of the
authorized representative of the firm filing the Legacy Form 102 and the date of the Legacy
Form 102. The authorized representative shall sign the Legacy Form 102 or satisfy such other
requirements for authenticating the report as instructed in writing by the Commission or its
designee.

15



(ii) The names of the accounts that the reporting trader guarantees or in which the reporting
trader has a financial interest; and

(iii) The names and locations of the brokerage firms at which the accounts are carried.

(10) Information concerning ownership or control by a foreign government, agent of a foreign
government entity specially acknowledged by a statute or regulation of a foreign jurisdiction or
entity financed by a foreign government either through ownership of capital assets or provision
of operating expenses.

(11) Signature of the trader and date of signing the report. If the reporting trader is an
organization, the signature must be that of a partner, officer or trustee authorized to sign on
behalf of that organization.

(b) Information to be furnished in part B of the Legacy Form 40 shall include:

(1) Business telephone number of the reporting trader.

(2) Employer and job title if the reporting trader is an individual.

(3) The following information if a trader makes transactions or holds positions in a futures or
option contract where such transactions or positions normally represent a substitute for
transactions to be made or positions to be taken at a later time in a physical marketing
channel, and the transactions or positions are economically appropriate to the reduction of risks
in the conduct and management of a commercial enterprise:

(i) Commercial activity associated with use of the option or futures market (such as and
including production, merchandising or processing of a cash commodity, asset or liability risk
management by depository institutions, or security portfolio risk management).

(ii) Physical commodities underlying use of the futures or option markets.

(iii) Futures or option markets used.

(4) The name, address, and type of any organization in which the reporting trader participates
in the management if such organization holds another futures or option trading account.

(5) If the reporting trader is a partnership or joint tenant, the name and address of each partner
(excluding limited partners in commodity pools) or joint tenant and the name of the partner or
joint tenant who ordinarily places orders. ,

(c) Information to be furnished in part C of the Legacy Form 40 shall include:

(1) Whether or not the reporting trader is organized under the laws of any state (including the
District of Columbia) or territory or possession of the United States or under the laws of any
foreign jurisdiction. Reporting traders organized outside the jurisdiction of the United States
must indicate the country of origin.

(2) The names of parent firms and whether or not they are organized under the laws of any
state (including the District of Columbia) or territory of possession of the United States and the
location of each headquarter’s office.

(3) Names and locations of all subsidiary firms that trade in commodity futures or options and
whether or not the subsidiary firms are organized under the law of any state (including the
District of Columbia) or territory or possession of the United States.

(4) Name, address, and business telephone number of person(s) actually controlling the trading
and, if different persons are responsible for different commodities or options, the commodities or
options for which each controller has responsibility.

(5) Name, office address and business telephone number of person or persons to contact
regarding trading.

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electronic submission of trader identification and market participant data on updated Form 102
(“New Form 102”) and Form 40 (“New Form 40”), and on entirely new Form 71 (“New Form
71”). New Form 102 is subdivided into three parts (“New Form 102A,” “New Form 102B,” and
“New Form 1028”), New Form 102B is an entirely new form, introduced by the OCR Final
Rule. Among other fields, the new and updated forms require the reporting of the following
information:

e New Form 102A: a position-based reporting form, which requires the reporting of both
special accounts and the trading accounts that comprise special accounts.

e New Form 102B: requires the reporting of trading accounts that exceed a stated volume
threshold during a single trading day (“volume threshold accounts”), regardless of
whether these positions remain open at the end of the day.

e New Form 1028S: facilitates the electronic submission of 102S filings, and requires
position-based reporting of consolidated accounts in the swaps market.

© New Form 40/40S: sent by the Commission to reporting traders via special call to collect
identifying information regarding traders.

e New Form 71: sent by the Commission via special call to collect additional information
on omnibus volume threshold accounts identified on New Form 102B.

The OCR Final Rule also amends Commission regulation § 18.05” to impose additional
recordkeeping obligations upon certain categories of persons required by the rule to submit data
to the Commission.

B. Summary of Prior No-Action Relief®

January 2015 FIA Request for No-Action Relief. By letter to the Division dated January 22,
2015, the FIA requested no-action relief from certain data reporting requirements of Parts 17, 18
and 20 of the Commission’s regulations implemented pursuant to the OCR Final Rule (the
“January 2015 FIA Letter”).

In the January 2015 FIA Letter, you represented that, notwithstanding the no-action relief
provided by the 2014 CFTC NAL, the industry needs additional time to educate clients of FIA
member firms with reporting obligations and collect the new data required for OCR reporting.

® Forms 102 and 40 (including 102S and 40S Filings) as they existed prior to the OCR Final Rule are
referred to herein as “Legacy” forms and filings—i.e., Legacy Form 102, Legacy 102S Filing, Legacy
Form 40, and Legacy 40S Filing.

717 CER § 18.05.

8 By letter to the Division dated June 6, 2014, the FIA first requested no-action relief from certain data
reporting requirements of Parts 17, 18 and 20 of the Commission’s regulations implemented pursuant to
the OCR Final Rule (the “2014 FIA Letter”). In response to the 2014 FIA Letter, the Division issued
CFTC Letter No. 14-95 (the “2014 CFTC NAL”), granting time-limited no-action relief from certain
reporting obligations under the OCR Final Rule.



(“OCR”) Final Rule (the “OCR Final Rule”),! This no-action letter replaces a no-action letter
with respect to the OCR Final Rule issued by the Division in February 2015. The February 2015
no-action letter, CFTC Letter No. 15-03 (the “February 2015 CFTC NAL”), extended the time
period for relief from certain reporting obligations under the OCR Final Rule.”

In this no-action letter, the Division is granting no-action relief from the requirement to report (a)
via New Form 102A, New Form 102B (with respect to DCM volume threshold accounts)” and
New Form 1028S until April 27, 2016, (b) via New Form 40/40S and New Form 71 until
September 28, 2016, and (c) via New Form 102B (with respect to SEF volume threshold
accounts)‘ until February 13, 2017, in each case subject to certain conditions more fully
described below. The additional no-action relief described in this letter may be relied upon by
all parties that are obligated to report pursuant to the OCR Final Rule on any of New Form
102A, New Form 102B, New Form 1028S, New Form 40/40S and New Form 71 (collectively,
“Reporting Parties”), as such terms are defined below. As discussed in section E below, the
Division advises Reporting Parties to check the OCR testing page on a regular basis during this
period of no-action relief to review updated testing requirements.

Separately, DMO staff is considering whether it is appropriate for the Division to offer additional
time-limited no-action relief with respect to the OCR Final Rule in the future, such as: relief
from reporting a subset of data points associated with trading account controllers; relief from
reporting certain information that may be subject to foreign privacy laws; or modifications to the
reportable trading volume level established in § 15.04 of the Commission’s regulations.

A. Background; OCR Final Rule

The OCR Final Rule expands upon the Commission’s pre-existing position and transaction
reporting programs by requiring the electronic submission of trader identification and market
participant data on new and updated reporting forms.’ The OCR Final Rule requires the

' Commission, Ownership and Control Reports, Forms 102/102S, 40/408, and 71; Final Rule, 78 FR
69178 (November 18, 2013) (hereinafter, “OCR Final Rule”). Terms not otherwise defined in this no-
action letter shall have the meaning assigned to them in the OCR Final Rule or in the Commission’s
regulations. The Commission adopted the OCR Final Rule in 2013 to enhance its identification of futures
and swap market participants,

? See section B below for a description of the February 2015 CFTC NAL, which was issued in response to
a request by the FIA on behalf of its members that are required to submit certain reports under Parts 15,
17, 18 and 20 of the Commission’s regulations.

3 As used herein, “DCM volume threshold accounts” means volume threshold accounts on or subject to
the rules of a reporting market that is a board of trade designated as a contract market under section 5 of
the Commodity Exchange Act (the “Act”).

* As used herein, “SEF volume threshold accounts” means volume threshold accounts on or subject to the
rules of a reporting market that is a swap execution facility registered under section Sh of the Act.

° Important information related to the implementation of the OCR Final Rule is available on the



This letter, and the no-action position taken herein, which is based on your representations,
represents the views of the Division only, and does 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, in its discretion, further condition,
modify, suspend, terminate or otherwise restrict the terms of the no-action relief provided herein.

If you have any questions concerning this correspondence, please contact Sebastian Pujol Schott,
Associate Director, DMO, at (202) 418-5641, or Mark Schlegel, Special Counsel, DMO, at (202)
418-5055.

Sincerely yours,

Vincent McGonagl¢
Director
Division of Market Oversight

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Appendix B
Detailed Instructions on Submitting Legacy Form 40°

Every trader who holds or controls a reportable futures and option position shall after a special
call upon such trader by the Commission or its designee file with the Commission a “Statement
of Reporting Trader” on the Legacy Form 40 at such time and place as directed in the call. All
traders shall complete part A of the Legacy Form 40 and, in addition, shall complete:

Part B--If the trader is an individual, a partnership or a joint tenant.
Part C--If the trader is a corporation or type of trader other than an individual, partnership, or
joint tenant.

(a) Information to be furnished by all traders in part A of the Legacy Form 40 shall include:

(1) Name and address of reporting trader.

(2) Principal business and occupation of the reporting trader and, in addition, whether
transactions are made for, on behalf of, or in association with, a customer trading program of a
futures commission merchant, a commodity pool, a producer cooperative, any business
activities in which the trader is commercially engaged, or for personal use.

(3) Type of trader.

(4) Registration status with the Commission, if any.

(5) The name and address of each person whose option or futures trading is controlled by the
reporting trader. Provided that if the reporting trader is a customer trading program, or the
commodity trading advisor thereof, that is a managed or guided account program in which
ten or more persons participate, the information furnished may be limited to the name of any
commodity pool which participates in the program and the name and address of the CPO.

(6) The name, address and business phone of each person who controls the trading of the
reporting trader,

(7) The names and locations of all futures commission merchants, clearing members,
introducing brokers, and foreign brokers through whom accounts owned or controlled by the
reporting trader are carried or introduced at the time of filing a Legacy Form 40, if such accounts
are carried through more than one futures commission merchant, clearing member or foreign
broker or carried through more than one office of the same futures commission merchant,
clearing member or foreign broker, or introduced by more than one introducing broker clearing
accounts through the same futures commission merchant, and the name of the reporting trader’s
account executive at each firm or office of the firm.

(8) The names and locations (city and state) of persons who guarantee the futures or option
trading accounts of the reporting trader or who have a financial interest of 10 percent or more in
the reporting trader or the accounts of the reporting trader.

(9) The following information concerning other option or futures trading accounts which the
reporting trader guarantees or other futures or option traders or accounts in which the reporting
trader has a financial interest of 10 percent or more:

(i) The names of traders for whom the reporting trader guarantees accounts or in which the
reporting trader has a financial interest;

5 See the link below to the Commission’s website for a copy of Legacy Form 40:

http://www.clic, gow/Porms/ssLINK/efteform40

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