Requesting Relief from External Business Conduct Rules

The Asset Management Group of SIFMA (SIFMA AMG) provides comments to the Commodity Futures Trading Commission (CFTC) requesting the CFTC exercise its authority under the Commodity Exchange Act (CEA), or take such other action as it deems appropriate, with regards to the compliance dates for, and relief from, external business conduct requirements and other information collection rules (Rules).  SIFMA AMG requests the CFTC adopt an interim final rule to defer the compliance date for the Rules until November 1, 2013.  This extension will enable swap dealers (SDs), major swap participants (MSPs) and asset managers to complete their information gathering and reconciliation efforts, and will help avoid scenarios where SDs or MSPs refuse to transact in swaps with certain counterparties as a result of being unable to achieve full verified compliance with the Rules’ safe harbors.

If the CFTC does not believe that a rulemaking to grant an extension would be appropriate in this instance, SIFMA AMG requests interpretative guidance or no-action relief to the effect that it does not intend to bring an enforcement action against an SD or MSP for failing to fully comply with applicable external business conduct requirements through November 1, 2013, provided the SD or MSP and its counterparty are all working in good faith to provide the SD or MSP with the information, representations and agreements necessary for the SD or MSP to avail itself of the relevant safe harbors for all accounts.