CFTC Extends No-Action Relief from OCR Reporting Obligations

The CFTC Division of Market Oversight ("DMO") extended no-action relief, previously provided under Letter 16-32 and Letter 17-45, from the ownership and control reporting ("OCR") requirements for reporting entities. The relief was granted in response to requests from ISDA, the FIA and the Commodity Markets Council.

As previously covered, the OCR final rule instituted requirements intended to enhance the identification of futures and swap market participants, and included several reporting requirements on collecting ownership and control information for active accounts. The DMO previously granted certain no-action relief to address concerns that the OCR requirements presented compliance issues that made it difficult for entities to "fully comply" with certain aspects of the rule.

The DMO extended the previously issued exemptive relief from the following requirements, among others:

• reporting certain trading account controller and volume threshold account controller identifying information;

• reporting on an account with a trading volume below 50 contracts on a particular day (replacing the 50-contract threshold with a 250-contract threshold);

• reporting certain omnibus account originator and consolidated account owner information on Form 102S;

• annually refreshing Forms 102A, 102B and 102S; and

• answering question 12 on Forms 40 and 40S requesting information on persons who have direct or indirect influence on, or exercise authority over, but not control of, the trading of a reporting party.

The no-action relief will remain effective until the earlier of (i) the later of an applicable effective date or compliance date for CFTC action addressing the covered reporting obligations, or (ii) September 29, 2023.

CFTC Commissioner Brian Quintenz described the action as "critical relief from the most burdensome and confusing requirements of the OCR forms." Mr. Quintenz urged the DMO to prioritize revising the OCR final rule in order to address issues that have been "lingering since the rule was last revised."