CFTC Extends No-Action Relief to Japan Securities Clearing Corporation (CFTC Letter 13-73)

The CFTC Division of Clearing and Risk has issued an extension of a time-limited no-action relief to Japan Securities Clearing Corporation ("JSCC") and its qualifying participants and affiliates.In the extension of CFTC Letter 12-56, the CFTC states that it will not recommend enforcement action against:

• JSCC with respect to registering as a derivatives clearing organization ("DCO") pursuant to the requirements of section 5b(a) of the CEA; or
• 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 section 2(h)(1)(A) of the CEA, through a registered DCO.

The extension will last until the earlier of the date on which JSCC registers as a DCO with respect to its interest rate swap clearing business or December 31, 2014, provided that JSCC submits a materially complete application by February 28, 2014. The extension is subject to conditions specified in the letter.

See: CFTC Letter 13-73.Related news: CFTC Issues No-Action Letter for Japan Securities Clearing Corporation and Its Clearing Participants (December 18, 2012).