Joint Trades Request for Extension of No-Action Letter 17-64
Summary
SIFMA and joint trades provided comments on a request that the Division of Market Oversight extend the no-action relief contained in CFTC Letter No. 17-64 which is currently scheduled to expire on December 1, 2020.
Excerpt
September 24, 2020
Commission Regulations Parts 45 and 46
Dorothy DeWitt
Director, Division of Market Oversight
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Re: Request for Extension of No-Action Letter 17-64
Dear Ms. DeWitt:
The Institute of International Bankers (“IIB”), the International Swaps and Derivatives Association (“ISDA”) and the Securities Industry and Financial Markets Association (“SIFMA” and, together with IIB and ISDA, the “Associations”)1 are writing on behalf of their member organizations to respectfully request that the Division of Market Oversight (the “Division”) extend the no-action relief contained in Commodity Futures Trading Commission (the “CFTC” or “Commission”) Letter No. 17-64 (“Letter 17-64”), 2 which is currently scheduled to expire on December 1, 2020. Specifically, Letter 17-64 extended certain no-action relief from the requirements of Parts 453 and 464 of the Commission’s regulations (the “Reporting Rules”) to non-U.S. swap dealers (“SDs”) and major swap participants (“MSPs”) established in Australia, Canada, the European Union, Japan or Switzerland (the “Enumerated Jurisdictions”) that are not part of an affiliated group in which the ultimate parent entity is a U.S. SD, U.S. MSP, U.S. bank, U.S. financial holding company or U.S. bank holding company (such non-U.S. SDs and MSPs, “Covered Registrants”), with respect to swaps with non-U.S. counterparties that are not guaranteed affiliates, or conduit affiliates, of a U.S. person (as those terms are defined in the Commission’s cross-border guidance (the “Cross-Border Guidance”)).5 On April 5, 2019, Commission Letter No. 19-09 extended the relief to cover non-U.S. SDs and MSPs established under the laws of the United Kingdom post-Brexit.6