CFTC Division of Clearing and Risk

U.S. Commodity Futures Trading Commission Division of Clearing and Risk Issues No-Action Relief from Swap Clearing Requirements

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On January 8, 2016, the U.S. Commodity Futures Trading Commission’s (the “CFTC”) Division of Clearing and Risk issued no-action relief to certain entities from the swap clearing requirements so long as certain conditions (outlined in the respective letters) are complied with. The covered entities include (1) small bank holding companies and savings and loan holding companies with consolidated assets of less than $10 billion and (2) Community Development Financial Institutions that have been certified by the U.S. Department of the Treasury. Press Release. No-Action letter. No-Action Letter.

 

CFTC Divisions Provide Time-Limited No-Action Relief for Certain Affiliated Counterparties

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On November 17, 2015, the U.S. Commodity Futures Trading Commission’s Divisions of Clearing and Risk and Market Oversight each renewed preexisting no-relief for specified types of inter-affiliate transactions. The Division of Clearing and Risk addressed situations connected to mandatory clearing regimes outside of the United States. The Division of Market Oversight delayed the application of the trade execution requirement to certain affiliate counterparties.  Release.

CFTC Issues Interpretive Letter Clarifying Eligibility for End-User Exception to the Clearing Requirement

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On May 4, CFTC Division of Clearing and Risk published a letter clarifying that a securitization SPV that is wholly-owned by, and consolidated with, a captive finance company under Section 2(h)(7)(C)(iii) of the Commodity Exchange Act (CEA) is also eligible for the end-user exception to a clearing requirement under Section 2(h)(1)(A) of the CEA.  Press Release.  Staff Letter.

CFTC Temporary No-Action Relief for Small Bank Board Approval Requirements

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On June 10, the CFTC Division of Clearing and Risk issued a no-action letter providing temporary relief to banks, savings associations, farm credit system institutions and credit unions having assets of less than $10 billion, and which are issuers of securities, from the board approval requirements of Section 2(j) of the CEA and regulation 50.50, subject to certain conditions.  This no-action relief expires on July 10.  CFTC Release.  CFTC No-Action Letter.

CFTC No-Action Relief for Swap Clearing by Cooperatives and Affiliates

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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).