CFTC Extends No-Action Relief from OCR Reporting Obligations

The CFTC Division of Market Oversight ("DMO") extended no-action relief from the ownership and control reporting ("OCR") requirements for reporting entities. The relief was granted in response to requests from ISDA, FIA and the Commodity Markets Council dated June 6, 2023.

As previously covered, the OCR final rule instituted requirements intended to enhance the identification of futures and swap market participants, and included several reporting requirements on collecting ownership and control information for active accounts. DMO previously granted no-action relief to address concerns that the OCR requirements presented compliance issues that made it difficult for entities to "fully comply" with certain aspects of the rule.

DMO extended the previously issued exemptive relief (granted under Letters 16-32, 17-45 and 20-30). The relief will remain effective until the earlier of (i) the applicable effective date or compliance date for CFTC action addressing the covered reporting obligations or (ii) September 30, 2024.

CFTC Commissioner Summer K. Mersinger supported the extension but criticized the approach. She reiterated her view that in order to properly "fix" a problematic requirement, it is necessary to conduct a formal rulemaking process, and she urged corrective OCR-proposed rulemaking to avoid more extensions.