On April 22, the CFTC issued two no action letters providing relief intended to support the development of swap execution facilities (SEFs) and the trading of swaps on SEFs and designated contract markets (DCMs). The first no action letter provides relief to SEFs and DCMs from regulations to allow for the correction of trades voided as a result of clerical or operational errors or errors discovered after a trade has been cleared. The second no action letter provides relief to SEFs from certain requirements concerning trade confirmations required from SEFs for non-cleared swaps. Release. No Action Letter #1. No Action Letter #2.
From June 26 through June 28, the CFTC released the following no-action letters:
- June 28: Masking of Certain Identifying Information for Part 45 and Part 46 Reporting Counterparties.
- June 28: Portfolio Reconciliation Requirements for Swap Dealers and Major Swap Participants.
- June 27: Certain External Business Conduct Standards and Documentation Standards for Swap Dealers and Major Swap Participants.
- June 27: Certain Business Conduct Standards for Foreign Exchange Intermediated Prime Brokerage Arrangements.
- June 27: Treatment of Swap Transactions for Persons Engaging in Floor Trader Activities.
- June 27: Relief from Reporting Requirements of Part 45 for CDS clearing-relating swaps.
- June 27: Relief concerning Bespoke or Complex Swaps.
- June 26: Documentation Standards imposed on Swap Dealers and Major Swap Participants in connection with (i) foreign exchange transactions that are swaps; and (ii) physically-settled foreign exchange forwards and swap agreements.
- June 26: Relief from Obligation to Report Valuation Data for Cleared Swaps.
- June 26: Duties imposed on Swap Dealers and Major Swap Participants for external business contact and documentation requirements relating to ‘Intended-To-Be-Cleared’ (ITBC) Swaps.
- June 26: Annual Compliance Reports for Swap Dealers.
- June 26: Terms that are included in Portfolio Reconciliations.
From December 14 through December 31, 2012, the CFTC released the following no-action letters:
- December 14: Timeline for Swap Dealer Compliance with Large Swap Trader Reporting Rules
- December 14: Annual Reports of Chief Compliance Officers for Swap Dealers
- December 17: Reporting of Unique Swap Identifier by Prime Brokers
- December 17: Compliance with Reporting Obligations by Swap Dealers and Major Swap Participants
- December 18: Japan Securities Clearing Corporation and its Clearing Participants
- December 18: Treatment of Swap Transactions on Natural Gas Exchange for Calculations under the Swap Dealer Definition
- December 18: Obligation of Swap Dealers and Major Swap Participants to provide Pre-Trade Mid-Market Mark for certain Credit Default Swaps and Interest Rate Swaps
- December 19: Reporting Provisions for Swap Dealers and Major Swap Participants for CDS Clearing-Relating Swaps
- December 19: Treatment of Swap Transactions by persons engaging in Floor Trader Activities for purposes of Swap Dealer Definition Calculations
- December 21: Treatment of Swap Transactions arising from Multilateral Portfolio Compression Exercises for purposes of Swap Dealer Definition Calculations
- December 21: Legal Entity Identifiers and Certain Identifying Information
- December 21: Singapore Exchange Derivatives Clearing Limited and its Clearing Members
- December 21: Compo Equity Total Return Swaps
- December 21: Reporting of Certain Non-Reporting Counterparty Information
- December 21: Swap Data Reporting Relief for Swap Dealers
- December 21: Registration Relief for Operators in Investment Pools that invest in Legacy Securitization Vehicles
- December 21: Registration Relief for Certain Commodity Pool Operators, Commodity Trading Advisors or any Principal or Associated Person required to register
- December 21: Registration Relief for Certain Associated Persons required to register as a commission merchant
- December 31: Registration Relief for Certain Introducing Brokers and Commodity Trading Advisors Involved in Swaps Activities
- December 31: Relief for Certain U.S. Banks Wholly Owned by non-U.S. Swap Dealers for purposes of Swap Dealer Definition Calculations
On November 28, the CFTC Division of Clearing and Risk issued time-limited no-action letters granting relief from required clearing under Section 2(h)(1)(A) of the Commodity Exchange Act and the newly adopted Part 50 regulations for (i) certain swaps entered into by qualifying cooperatives and (ii) certain swaps entered into by qualifying affiliated counterparties. The no-action relief provided by each letter will remain effective until the earlier of April 1, 2013 or the effective date of final rulemaking regarding the clearing exemptions for cooperatives or affiliated counterparties, respectively. CFTC Release (Cooperatives). CFTC Release (Affiliates). CFTC No Action Letter (Cooperatives). CFTC No Action Letter (Affiliates).