The CFTC Division of Market Oversight issued a time-limited extension of No-Action Letter No. 15-51. This letter provides relief from the SDR reporting rules to the CFTC-registered swap dealers ("SDs") and major swap participants ("MSPs") that were established in Australia, Canada, the European Union, Japan or Switzerland and are not part of an affiliated group in which the ultimate parent entity is U.S.-based.
The relief will expire on the earlier of (i) 30 days following the issuance of a comparability determination by the CFTC for the jurisdiction in which the non-U.S. SD or non-U.S. MSP is established, or (ii) December 1, 2017.
Commentary / Nihal Patel
This relief had been widely expected, but, as with the extensions granted in 2014 and 2015, this extension was not issued until shortly before the expiration of the previous relief. It remains to be seen how the CFTC will address substituted compliance for these swap dealers and participants under new CFTC leadership in 2017.
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