CFTC Issues No-Action Relief for Swap Dealers and Major Swap Participants from Compliance with Reporting Obligations (CFTC Letter 15-38) (with Lofchie Comment)

The CFTC Division of Market Oversight issued a no-action letter to swap dealers ("SDs") and major swap participants ("MSPs") that relieves them of the obligation to report valuation data for cleared swaps as required by CFTC Rule 45.4(b)(2)(ii). CFTC Letter 15-38 extends the previous period of relief provided in CFTC Letter 14-90 until June 30, 2016.

The relief applies to (i) all SDs and MSPs that are reporting counterparties under Rule 45.8 and (ii) all cleared swaps for which the SD or MSP has the obligation to report valuation data under Rule 45.4(b)(2)(ii).

Lofchie Comment: Obviously, there is no need for swap dealers to report information that is being reported already by the clearing corporation. That is why the "requirement" has been delayed for so long. In a rational world, the rule would be repealed so that regulators and market participants could focus on dealing with real issues.

See: CFTC Letter 15-38; CFTC Press Release. Related news: CFTC Issues Temporary No-Action Relief for SDs and MSPs from Compliance with Reporting Obligations (CFTC Letter 14-90) (July 1, 2014).