CFTC Extends No-Action Relief to Japan Securities Clearing Corporation and Its Qualifying Clearing Participants and Affiliates (CFTC Letter 14-155)

The CFTC Division of Clearing and Risk extended the no-action relief granted in CFTC Letter 13-73 to Japan Securities Clearing Corporation ("JSCC") and its qualifying clearing participants and affiliates.

In the letter, the CFTC stated that it will not recommend enforcement action against:

• JSCC, with respect to its registering as a derivatives clearing organization ("DCO") pursuant to the requirements of CEA Section 5b(a); and
• a qualified clearing participant of JSCC, or a parent or affiliate of a JSCC qualified clearing participant, subject to the Japanese clearing requirement, with respect to clearing a yen-denominated interest rate swap that is required to be cleared, under CEA Section 2(h)(1)(A), through a registered DCO.

The extension will expire at either the earlier of the date on which JSCC registers as a DCO with respect to its interest rate swap clearing business, or December 31, 2015.

See: CFTC Letter 14-155.Related news: CFTC Extends No-Action Relief to Japan Securities Clearing Corporation (CFTC Letter 13-73) (December 19, 2013); CFTC Issues No-Action Letter for Japan Securities Clearing Corporation and Its Clearing Participants (December 18, 2012).