CFTC Time-Limited No-Action Letter Regarding Agricultural and Exempt Commodities and the SD-MSP Definitions
The Division of Swap Dealer and Intermediary Oversight ("DSIO") issued the attached no-action letter regarding the treatment of agricultural and exempt commodities in making calculations for purposes of the swap dealer and major swap participant definitions. The no-action letter states that the DSIO will not recommend the CFTC take action against any person for:
- failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap-dealing activity for purposes of CFTC Rule 1.3(ggg)(4), a swap that (i) references an exempt commodity or agricultural commodity, and (ii) is executed prior to October 20, 2012; or
- failure to include, in its calculation of daily average aggregate uncollateralized outward exposure and daily average aggregate potential outward exposure for purposes of CFTC Rule 1.3(jjj)(4), such exposures arising from any swap that references an exempt commodity or agricultural commodity, from October 12, 2012 through October 20, 2012, inclusive.
See: CFTC Letter 12-20 Commission Regulations 1.3(ggg)(4) and 1.3(hhh); No-Action.