CFTC’s Division Of Swap Dealer And Intermediary Oversight Issues No-Action Relief From Certain External Business Conduct Standards And Documentation Standards

The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) today announced the issuance of a no-action letter relating to certain duties imposed on swap dealers (SDs) and major swap participants (MSPs) pursuant to the Commission’s Business Conduct Standards with Counterparties (External BCS), as well as certain documentation requirements imposed on SDs and MSPs pursuant to Commission Regulation 23.504. The no-action letter is applicable to all SDs and MSPs.

The relief provided in the letter addresses certain regulatory obligations of SDs and MSPs in the context of an “Intended-To-Be-Cleared Swap,” which, as defined in the letter, is a swap that is: (i) of a type accepted for clearing by a DCO, and (ii) intended to be submitted for clearing contemporaneously with execution. Such relief extends to certain requirements under the External BCS and Commission Regulation 23.504, subject to the conditions and limitations set forth in the letter.

This letter supersedes Letter No. 13-33, and states that no person may rely upon the relief provided in Letter No. 13-33 after November 15, 2013.