CFTC's Division of Clearing and Risk Issues No-Action Letter for Corporación Andina de Fomento (Letter 13-25)

The CFTC's Division of Clearing and Risk ("DCR") issued a letter today stating that the DCR will not recommend that the CFTC take enforcement action against the Corporacioacute;n Andina de Fomento ("CAF") for failure to comply with the clearing requirement of CEA Section 2(h)(1) ("Clearing Requirement") as implemented by CFTC Rules 50.2 ("Treatment of swaps subject to a clearing requirement") and 50.4 ("Classes of swaps required to be cleared").

The DCR believes that granting this no-action to CAF would be consistent with the end-user exception to the Clearing Requirement, in which the CFTC determined that certain international financial institutions should not be subject to the Clearing Requirement. According to the letter, CAF is an international organization that seeks to foster and promote sustainable economic development in Latin America and the Caribbean.

See: CFTC Letter 13-25.