CFTC Conditional No-Action Relief from Clearing for Swaps Entered into by Eligible Treasury Affiliates (Letter 13-22) (with Lofchie Comment)

The CFTC Division of Clearing and Risk issued no-action relief providing eligible treasury affiliates that enter into swaps which are subject to the clearing requirement in Section 2(h)(1) of the Commodity Exchange Act and Part 50 of the CFTC rules with relief from the clearing requirement, subject to certain conditions and requirements. Most significantly, the treasury affiliate must be intermediating the swap for another affiliate that would have been eligible to use the exemption from the clearing exemption had it not interposed an affiliate in dealing with the "street."

Lofchie Comment: This letter is subject to only sixteen conditions, although one could count a somewhat lower or much higher number of conditions depending on how one groups the conditions.

See: No-Action Letter 13-22.See also: Press Release.