-
Public Info posted an update 1 year, 3 months ago
CFTC Extends Reporting Relief for Non-U.S. Swap Dealers
WASHINGTON, D.C. – On June 23, 2025, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) announced an extension of its no-action position, originally outlined in CFTC Letter No. 22-14, regarding certain swap reporting requirements. This extension provides relief for specific non-U.S. swap dealers and non-U.S. major swap participants from certain obligations under Part 45 and Part 46 of the CFTC’s regulations.
The no-action letter specifically applies to entities established in Australia, Canada, the European Union, Japan, Switzerland, or the United Kingdom. Crucially, these entities must not be part of an affiliated group where the ultimate parent entity is a U.S. swap dealer, U.S. major swap participant, U.S. bank, U.S. financial holding company, or U.S. bank holding company.
Background on CFTC Letter No. 22-14 and Reporting Requirements:
CFTC Letter No. 22-14, which was previously set to expire, granted relief from certain swap data reporting rules. This relief has been sought by industry associations like the International Swaps and Derivatives Association (ISDA), the Institute of International Bankers (IIB), and the Securities Industry and Financial Markets Association (SIFMA) to allow the CFTC more time to finalize rules concerning the cross-border application of its reporting requirements.
* Part 45 – Swap Data Recordkeeping and Reporting Requirements: This part of the CFTC’s regulations generally requires all swap counterparties, including end-users, to keep comprehensive records of swap transactions and report swap data throughout the life of the trade. This includes “creation data” (primary economic terms and confirmation data) and “continuation data” (life-cycle event data and valuation data). The aim is to enhance transparency and reduce systemic risk.
* Part 46 – Swap Data Recordkeeping and Reporting Requirements: Pre-Enactment and Transition Swaps: This part specifically addresses reporting requirements for swaps entered into before the enactment of the Dodd-Frank Act or during a transitional period. It mandates similar recordkeeping and reporting to a Swap Data Repository (SDR) for these historical swaps.
The extension of this no-action letter provides continued flexibility for the specified non-U.S. entities by deferring certain compliance obligations, pending further action by the CFTC on its cross-border regulatory framework.
