The CFTC Division of Market Oversight granted a request from ISDA to extend time-limited no-action relief to certain entities from the requirement to report continuation data and creation data, and generate USIs in connection with cleared swaps.
CFTC Letter 18-03 extends the relief granted by CFTC Letters 16-85 and 16-86, which provide no-action relief to (i) certain non-U.S. derivatives clearing organizations that operate pursuant to exemptive or no-action relief granted by the CFTC (referred to as "Relief DCOs") and (ii) market participants transacting on Relief DCOs. The relief generally relates to the fact that the Relief DCOs may not be considered "derivatives clearing organizations" for relevant purposes under the CFTC rules. Among other things, the relief provides that (i) market participants submitting swaps to Relief DCOs need not report certain data under Part 45 of the CFTC rules; and (ii) market participants reporting swaps intended to be cleared on Relief DCOs may identify such swaps as "intended to be cleared" in the "Cleared or Uncleared" reporting field under Parts 43 and 45 of the CFTC rules. A more complete summary of the relief can be found in previous coverage here.
The no-action relief is effective immediately and will expire on the earlier of (i) February 19, 2021, (ii) the effective date of relevant CFTC amendments to the reporting requirements, and (iii) the revocation or expiration of the exemptive relief to the relevant DCO.
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