Time-Limited No-Action Relief (13-37) Regarding the Treatment of Swap Transactions by Floor Traders for Purposes of Swap Dealer Definition

Division of Swap Dealer and Intermediary Oversight ("DSIO") today issued a time-limited no-action letter that provides relief for persons engaging in floor trader activities. The relief provided in the letter expires on October 2, 2013. During that limited time period, DSIO will not recommend that the CFTC take an enforcement action against an entity for failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of CFTC Regulation 1.3(ggg)(4) (definition of "swap dealer") a swap that is submitted for clearing to a registered derivatives clearing organization, provided that: (1) the entity does not have a registered swap dealer affiliate; (2) the entity entered into the swap using proprietary funds for its own account; and (3) the entity complies with the requirements set forth in CFTC Regulations 1.3(ggg)(6)(iv)(D)-(H). Further, to rely on the relief provided in the no-action letter, a person must file a claim with DSIO prior to July 1, 2013. The time-limited relief provided in the no-action letter extends the time-limited relief previously provided by DSIO in CFTC Letter No. 12-60, which was issued on December 19, 2012.

Click here to view the No-Action Letter.