Temporary No-Action Relief for Swaps between Eligible Affiliate Counterparties

10 March 2014
Download PDF

Key takeaways:

  • On March 6, 2014, The Commodity Futures Trading Commission’s Divisions of Clearing and Risk and Market Oversight provided time-limited no-action relief with respect to certain swap transactions entered into between affiliated counterparties.
  • The Division of Clearing and Risk issued a no-action letter extending the time limitation contained in the alternative compliance frameworks available to Eligible Affiliate Counterparties (as defined in CFTC regulation 50.52(a)) pursuant to CFTC regulation 50.52(b)(4)(ii)-(iii) from March 11, 2014 to December 31, 2014.
  • The Division of Market Oversight issued a no-action letter providing time-limited no-action relief from the mandatory trade execution requirement to Eligible Affiliate Counterparties (as defined in Commission regulation 50.52(a)) that engage in swap transactions with one another that involve a swap subject to the trade execution requirement.