CFTC Division of Market Oversight

CFTC’s Division of Market Oversight Supplements No-Action Relief to SEFs and DCMs from Certain CFTC Regulations for Correction of Errors

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On January 8, the Commodity Futures Trading Commission (CFTC) Division of Market Oversight issued a no-action letter that provides an alternative error correction process by which swap execution facilities (SEFs) and designated contract markets (DCMs) may permit counterparties to determine that an error has occurred and correct the error, subject to ex post facto review by the SEF or DCM. The no-action letter supplements the relief provided in CFTC Letter 17-27, which provided relief from certain CFTC regulations to permit SEFs and DCMs to correct clerical or operational errors discovered after a swap has been cleared. CFTC Release.

CFTC’s Division of Market Oversight Extends Existing Relief and Provides Additional Relief for Reporting Parties From Reporting Obligations as Required by the OCR Final Rule

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On September 25, 2017, the Division of Market Oversight of the U.S. Commodity Futures Trading Commission “issued a no-action letter (CFTC Staff Letter 17-45) that extends current relief and provides additional relief to reporting parties from [certain] reporting obligations[ under a 2013 final rule relating to ownership and control in futures and swap markets.]” Release.

CFTC Extends No-Action Relief to SEFs and DCMs From Certain CFTC Regulations for Correction of Errors

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On May 30, 2017, the U.S. Commodity Futures Trading Commission‘s (“CFTC“) Division of Market Oversight and Division of Clearing and Risk issued a no-action letter extending the relief provided in CFTC Letter No. 16-58, which expires on June 15, 2017. That no-action letter provides relief from certain CFTC regulations to permit swap execution facilities (“SEFs“) and designated contract markets (“DCMs“) to correct clerical or operational errors that caused a swap to be rejected for clearing and thus become void. The no-action letter also permits SEFs and DCMs to correct clerical or operational errors discovered after a swap has been cleared. The letter extends the relief until the effective date of any revised CFTC regulations regarding methods of execution requirements and pre-arranged trading. Release. Full Letter.

U.S. Commodity Futures Trading Commission Divisions Issue Time-Limited No-Action Letter Extending Relief from Certain Recordkeeping Requirements Under Commission Regulations

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On December 8, 2015, the U.S. Commodity Futures Trading Commission’s (the “CFTC”) Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight issued a time-limited no-action letter extending the relief provided in CFTC Letter No. 14-147. The relief would otherwise expire on December 31, 2015 and applies to commodity trading advisors (“CTAs”) that are registered with the CFTC and are members of designated contract markets (“DCMs”) or swap execution facilities (“SEFs”). The extension grants no-action relief to these entities from the requirement to record oral communications, and also to covered market participants from the requirement to link records of oral and written communication that lead to the execution of a transaction in a commodity interest and related cash or forward transactions. Such relief will expire on the effective date of any final CFTC action with respect to the CFTC’s proposal to amend Regulation 1.35(a). Press Release. 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’s Division of Market Oversight Provides Additional Time to Comply with Electronic Reporting Requirements in the OCR Final Rule

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On September 28, the U.S. Commodity Futures Trading Commission’s (the “Commission”) Division of Market Oversight issued a no-action letter that provides reporting parties additional time to comply with certain reporting requirements of the ownership and control final rule.  The rule requires reporting parties to electronically submit trader identification and market participant data on new and updated forms.  These forms allow for better identification of participants in futures and swaps markets.  Providing reporting parties with additional time is aimed at improving the reliability and consistency of data provided to the Commission.  The no-action letter extends relief to dates ranging from April 27, 2016 to February 13, 2017.  Press Release.

CFTC Issues Advisory on Reporting Obligations Pursuant to the Ownership and Control Final Rule

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On March 23, CFTC Division of Market Oversight and Division of Swap Dealer and Intermediary Oversight issued a staff advisory to remind certain reporting parties (including futures commission merchants, clearing members, foreign brokers, swap dealers and certain reporting markets) of their obligation to obtain information on a timely basis from their customers or counterparties in order to comply with the ownership and control reports final rule (OCR Final Rule).  Release.  Staff Advisory.  OCR Final Rule.

CFTC Temporary No-Action Relief for Transition to SEF Rules

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On June 17, the CFTC Division of Market Oversight issued a no-action letter providing temporary relief to entities that have been operating pre-Dodd-Frank Act trading platforms.  The no-action letter extends relief provided by a letter issued in December 2012 to coincide with the compliance date for the CFTC’s Swap Execution Facility final rules, which were published on June 4.  The continued no-action relief will commence on July 1 and expire on October 2.  CFTC Release.  CFTC No-Action Letter.