CFTC Extends Reporting Relief to Non-U.S. SDs from Swap Data Reporting Requirements

The CFTC Division of Market Oversight ("DMO") extended previously issued no-action relief to non-U.S. swap dealers ("SDs") from certain swap data reporting requirements.

The no-action letter extends relief to non-U.S. SDs that (i) are established in Australia, Canada, the EU, Japan or Switzerland, and (ii) are not part of an affiliated group with a U.S. ultimate parent. For these entities, the relief addresses swaps entered into with non-U.S. counterparties that are not guaranteed affiliates or conduit affiliates.

The relief was initially granted by CFTC Letter 13-75, later extended by CFTC Letter 17-64 and again by CFTC Letter 20-37. The relief was set to expire no later than December 1, 2022 and is now set to expire on the earlier of (i) December 1, 2025, or (ii) 30 days after the issuance of a comparability determination regarding the reporting rules for the relevant swap dealer's jurisdiction.

CFTC Commissioner Summer K. Mersinger said that she supports issuance of the relief but said that "12 years of no-action relief is inappropriate" and that the CFTC "owes market participants a permanent solution."