Alert November 13, 2012

CFTC Provides No-Action Relief for Swap Dealer and Major Swap Participant Record-Keeping Requirements

The CFTC has issued a no-action letter providing temporary limited relief from certain record-keeping requirements applicable to swap dealers (“SDs”) and major swap participants (“MSPs”).  The relief comes in response to a letter from the Securities Industry and Financial Markets Association stating that operational constraints would impair the ability of SDs and MSPs to comply with the rules in a timely manner.  The relief delays until March 31, 2012 (i) the requirement that SDs and MSPs make and keep records of certain oral communications of substantially all relevant personnel involved in swaps activity; (ii) the requirement that they maintain all transaction records in a manner “identifiable and searchable” by transaction and counterparty; (iii) the requirement that they use a timestamp recording transaction times in Coordinated Universal Time (“UTC”) rather than local time for certain records, and (iv) the requirement that SDs and MSPs retain swaps records at their principal places of business or other designated principal offices.