CFTC Issues Time-Limited No-Action Relief Regarding the Treatment of Swap Transactions, by Persons Engaging in Floor Trader Activities, for Purposes of Making Calculations under the Swap Dealer Definition
The CFTC's Division of Swap Dealer and Intermediary Oversight ("DSIO") issued the attached time-limited no-action letter providing relief for persons engaging in floor trader activities. During that limited time period, DSIO will not recommend that the CFTC take an 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 ofCFTC Rule 1.3(ggg)(4), a swap that is submitted for clearing to a registered derivatives clearing organization, provided that:
- the entity does not have a registered swap dealer affiliate;
- the entity entered into the swap using proprietary funds for its own account; and
- the entity complies with the requirements set forth in Commission Regulations 1.3(ggg)(6)(iv)(D)-(H).
Expiry Date: July 1, 2013.
See: CFTC Letter 12-60: Commission Regulation 1.3(ggg); No-Action.