CFTC Staff Provides Further LIBOR-related No-Action Relief
CFTC staff granted additional no-action relief from certain CFTC swap data reporting requirements relating to LIBOR transition.
In a letter to the Alternative Reference Rate Committee ("ARRC"), the Division of Market Oversight and Division of Data provided no-action relief from the requirement to report "life cycle event" data relating to a change in floating rates effected as a result of the implementation of fallbacks published by ISDA for rates such as USD LIBOR. In particular, the relief covers:
- CFTC Rule 45.4 ("Swap data reporting: Continuation data") for any entity that fails to report in a timely manner the change in a floating rate for an uncleared swap referencing any impacted rate under the ISDA fallback provisions, so long as the entity uses its "best efforts" to report the change within the deadline, but no later than five business days from June 30, 2023; and
- CFTC Rule 43.3 ("Method and timing for real-time public reporting") for any entity that fails to report the floating rate for an uncleared swap referencing any impacted rate under the ISDA fallback provisions.
Commentary
Firms should note that the Part 45 relief is short-dated; it grants five additional business days from June 30, 2023 to report the relevant data - i.e., July 10, 2023 for U.S. markets.