CFTC Issues Extension of Time-Limited No-Action Relief for SDs and MSPs from the Reporting Requirements of Part 45 for CDS Clearing-Related Swaps (Letter 13-36)
The CFTC Division of Market Oversight ("DMO") issued a no-action letter granting an extension of time-limited relief to swap dealers ("SDs") and Major Swap Participants ("MSPs"), previously granted in Letter 12-59 and expiring on June 30, 2013, from the obligation to report swap data under CFTC Rules Part 45 ("Swap Data Recordkeeping and Reporting Requirements") for cleared credit default swaps ("CDS"). The letter provides that the Division will not recommend the CFTC take enforcement action against an SD or MSP for their failure to comply with Part 45 reporting obligations for CDS Clearing-Related Swaps.
In addition to the relief expiring on December 31, 2013, it is subject to the following conditions:
- The reporting counterparty must be a clearing member of a derivatives clearing organization ("DCO" ) that is eligible to clear CDS indices and must participate in that DCO's CDS settlement price process; and
- The no-action relief will only apply to CDS Clearing-Related Swaps arising from a DCO's settlement price process.
See: CFTC Letter 13-36.