The CFTC Division of Data ("DOD") renewed previously issued no-action relief from certain reporting and recordkeeping requirements for transactions involving derivatives clearing organizations ("DCOs") acting pursuant to either (i) a CFTC exemptive order or (ii) CFTC Division of Clearing and Risk ("DCR") no-action relief ("Relief DCOs").
CFTC Letter 21-12 renews relief granted under CFTC Letters 18-03 and 16-85 (Letter 18-03 expired on Feb. 19, 2021), which provide no-action relief under CFTC Rules against a counterparty to a Relief DCO solely for failing to:
- report continuation data pursuant to CFTC Rule 45.4 ("Swap Data Reporting: Continuation Data") on original swaps cleared by the Relief DCO (including reporting of the termination of such swaps);
- report creation or continuation data, pursuant to CFTC Rules 45.3 ("Swap Data Reporting: Creation Data") and 45.4, respectively, on clearing swaps between a Relief DCO and the counterparty to a Relief DCO; or
- generate unique swap identifiers pursuant to CFTC Rule 45.5 ("Unique transaction identifiers") for clearing swaps between a Relief DCO and a counterparty to a Relief DCO.
The CFTC stated that such no-action relief is contingent upon a counterparty to a Relief DCO providing a Relief DCO with all information on original swaps "as required by [a] Relief DCO in its clearing agreement."
In addition, the no-action relief permits a reporting entity, subject to certain conditions, to identify swaps that are intended to be cleared by a Relief DCO as a cleared swap in primary economic terms (or "PET") data to be reported under Parts 43 and 45 of the CFTC regulations.
The no-action relief is effective immediately and will be valid until the earlier of (i) the May 25, 2022 compliance date for the amendments to Parts 43 and 45, or (ii) the revocation or expiration of the relevant exemptive relief applicable to the relevant DCO.
Primary Sources
- CFTC Letter 21-12: No-Action Relief from Certain Reporting Obligations for Counterparties Clearing Swaps through Derivatives Clearing Organizations Acting under Exemptive Orders or No-Action Relief
- CFTC Press Release: CFTC Staff Renews Temporary No-Action Relief for Entities Submitting Swaps for Clearing with DCOs Acting under Exemptive Orders or No-Action Relief
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