The CFTC issued for public comment a proposed exemptive order that would grant temporary exemptive relief to allow non-U.S. swap dealers and non-U.S. major swap participants to delay compliance with most of the entity-level requirements (excluding certain reporting requirements for swaps with U.S. counterparties) under certain conditions. It would also allow those parties, as well as foreign branches of U.S. swap dealers and U.S. major swap participants, to temporarily comply only with the transaction-level requirements in the applicable home jurisdiction or branch location for swaps with non-U.S. counterparties. The temporary relief would expire 12 months following the publication of the proposed order in the Federal Register.
Under the proposal, U.S. swap dealers and U.S. major swap participants would be able to delay compliance with certain entity-level requirements until January 1, 2013.
Entities seeking to avail themselves of the phased compliance periods would be required to register as a swap dealer or major swap participant with the National Futures Association, and to submit to the NFA a compliance plan explaining how it intends to comply with all applicable requirements under the Commodity Exchange Act.
Comments on the proposal are due 30 days after its forthcoming publication in the Federal Register.