Alert November 27, 2012

CFTC Staff Postpones Compliance Dates for Certain Swap Dealer Reporting Obligations

The staff of the CFTC’s Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight issued a  no-­­action letter that delays the onset of certain swap dealer reporting obligations.  Pre-existing CFTC regulations and guidance stated that swap dealers must begin reporting under the real-time public reporting rules (embodied in Part 43 of the CFTC’s regulations), swap data repository reporting rules (embodied in Part 45), and historical swap data repository reporting rules (embodied in Part 46) by the earlier of the date on which the swap dealer is required to register as a swap dealer and the date on which it applies for registration.  Therefore, registering as a swap dealer before the registration deadline required the swap dealer to begin reporting under these regulations earlier than would have otherwise been required.  Responding to concerns raised by market participants, the no-action letter effectively allows swap dealers to delay reporting until the deadline for them to register as such, even if they register earlier.  This relief applies to the Part 43 and Part 45 reporting rules and expires on April 10, 2013, at which point all swap counterparties must be in compliance with their reporting obligations.

In response to a request by the International Swaps and Derivatives Association expressing concern that the large volume of historical swaps could make meeting the Part 46 reporting compliance date difficult, the no-action letter also extends the deadline for the reporting of historical swaps to 30 days after the swap dealer is required to begin reporting swap transaction data under the Part 43 and Part 45 reporting rules, after giving effect to the extension provided in the no­-action letter.  This relief also expires on April 10, 2013, with the result that those swap dealers required to register on or in the 29 days prior to April 10, 2013 will not have 30 days between the applicable compliance dates.