CFTC No-Action Letter Extending the Deadline for Compliance with Swap Data Reporting Rules (with Lofchie Comment)

The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") and Division of Market Oversight (DMO) jointly issued a letter providing swap dealers with time-limited no-action relief from certain requirements of the CFTC's swap data reporting rules. The no-action letter establishes a common monthly date by which all newly registered swap dealers must be in compliance with their reporting obligations, and extends the deadline for reporting historical swap transaction data required under Part 46.

Under the relief: (i) no swap dealer will be required to report swap transaction data until 12:01 on December 31, 2012 (even if the swap dealer registers before that date and otherwise would, in theory, have had to start reporting on the earlier date on which it became registered); and (ii) swap dealers who register on December 31 will not have to report historical swaps data until one month after the date on which they were required to register (thus on January 30 for firms becoming registered on December 31). The letter also sets out a fuller schedule for when the various requirements apply that should be reviewed by all firms that are proposing to register.

Cross-Reference(s): CFTC Rules Part 43, 45 and 46.

Lofchie Comment: I remain curious as to whether it would not be more practical to have firms become registered on January 2 rather than December 31. Given the number of rules that are adopted, revised, delayed and the like, it is hard for me to see the benefit of starting a new process on the last day of the year. Or why not start January 4, so that firms would have the weekend to work out bugs? It just seems an odd start date to me if for no other reason than there are bound to be people on vacation or at home with their families on December 31.

View No-Action Letter 12-32 here (links externally to CFTC website).