CFTC Issues Guidance to Australian Clearing Agency Regarding Trade Reporting (CFTC Letter 14-17)

The CFTC issued a letter to ASX Clear (Futures) Pty Limited ("ASXCLF") regarding its compliance with the condition to the no-action relief granted by the Division of Clearing and Risk on February 6, 2014, which stated that ASXCLF must comply with the reporting obligations applicable to registered derivatives clearing organizations ("DCOs") under CFTC Rules Part 45 ("Swap Data Recordkeeping and Reporting Requirements").

According to the letter, if an ASXCLF clearing participant clears a swap ("alpha swap") through ASXCLF that has been reported to a CFTC-registered swap data repository ("SDR"), then ASXCLF must report to an SDR data regarding the two swaps resulting from the novation of the alpha swap.

To avoid duplicative reporting for such transactions, the letter stated that ASXCLF should have rules which prohibit Part 45 reporting of the two swaps by the original counterparties to the alpha swap.

See: CFTC Letter 14-17. Related news: CFTC Issues No-Action Letter Delaying Temporarily the Registration of an Australian Clearing Organization (CFTC Letter 14-07) (with Lofchie Comment) (February 6, 2014).