“CFTC No-Action Relief from Recordkeeping and Reporting Requirements for Swap Transaction Counterparties that are Neither Swap Dealers Nor Major Swap Participants”
The Commodity Futures Trading Commission (the “CFTC”) has recently released three no-action letters related to recordkeeping and reporting requirements for swap transactions between counterparties that are neither swap dealers nor major swap participants (“non-SD/MSP counterparties”). Together, these three letters:
1. extend the deadlines by which non-SD/MSP counterparties must comply with CFTC swap data reporting obligations;
2. provide no-action relief from CFTC swap data recordkeeping and reporting requirements for transactions by non-SD/MSP counterparties that otherwise fall under the “trade option exemption” (the “TOE”); and
3. provide no-action relief from CFTC swap data reporting requirements for swap transactions between affiliated non-SD/MSP counterparties.
This Stroock Special Bulletin discusses each of these no-action letters and CFTC Commissioner Scott O’Malia’s criticism of them.