Time-Limited No-Action Relief for Swap Counterparties that are not Swap Dealers or Major Swap Participants, from Certain Swap Data Reporting Requirements of Parts 43, 45 and 46 of the Commission’s Regulations.

Summary: Time-Limited No-Action Relief for Swap Counterparties that are not Swap Dealers or Major Swap Participants, from Certain Swap Data Reporting Requirements of Parts 43, 45 and 46 of the Commission’s Regulations.

U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5000

Facsimile: (202) 418-5521

www.cftc.gov

Division of Market Oversight

CFTC Letter No. 13-10

No-Action

April 9, 2013

Division of Market Oversight

Time-Limited No-Action Relief for Swap Counterparties that are not Swap Dealers or

Major Swap Participants, from Certain Swap Data Reporting Requirements of

Parts 43, 45 and 46 of the Commission’s Regulations

Ladies and Gentlemen:

This letter responds to requests received from multiple parties, by the Division of Market

Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission”),

to provide no-action relief to extend the date by which a swap counterparty that is not a swap

dealer or a major swap participant, as such terms are defined in the Commodity Exchange Act1

and the Commission’s regulations thereunder (a “non-SD/MSP counterparty”), must be in

compliance with its reporting obligations under the Commission’s swap data recordkeeping and

reporting rules. 2

1 7 U.S.C. § 1, et seq.

2 This letter responds to, but, for the reasons set forth herein, does not fully grant all no-action relief requested in, the

following: (1) Letter from Sutherland, Asbill & Brennan LLP on behalf of the Commercial Energy Working Group,

Request for No-Action Relief Extending the April 10, 2013 Compliance Date for Reporting Swap Transactions

under Parts 43, 45 and 46 of the Commission’s Regulations (March 1, 2013) (the “CEWG Letter”); (2) Letter from

the Edison Electric Institute, the National Rural Electric Cooperative Association, the American Public Power

Association, the Electric Power Supply Association and the Am

Group,

Request for No-Action Relief Extending the April 10, 2013 Compliance Date for Reporting Swap Transactions

under Parts 43, 45 and 46 of the Commission’s Regulations (March 1, 2013) (the “CEWG Letter”); (2) Letter from

the Edison Electric Institute, the National Rural Electric Cooperative Association, the American Public Power

Association, the Electric Power Supply Association and the American Gas Association in support of the CEWG

Letter (March 8, 2013); (3) Letter from Mondelez International in support of the CEWG Letter (March 26, 2013);

(4) Letter from the Institute of International Bankers in support of the CEWG Letter (March 28, 2013); (5) Letter

from the International Swaps and Derivatives Association, Inc. and the Financial Services Roundtable, Request for

No-Action Relief Extending ‘Compliance Date 3’ (March 28, 2013); and (6) Letter from The Coca-Cola Company

in support of the CEWG Letter (March 31, 2013).

The Division notes that it has received the following additional requests for no-action relief from the reporting

requirements of Part 46 of the Commission’s regulations: (1) Letter from the Commodity Markets Council, Request

for No-Action Relief: Commodity Futures Trading Commission (“CFTC”) Part 46 Recordkeeping Requirements

and CME Contingent EFS or EOO Transactions (March 20, 2013); and (2) Letter from the Futures Industry

Association, Request Pursuant to Commission Regulation 140.99 for Certain No-Action Relief from Part 46

Requirements (March 26, 2013).

Solely for the reasons set forth herein, the Division has determined to provide to non-SD/MSP counterparties certain

temporary no-action relief from the reporting requirements of Part 43, Part 45 and Part 46.

2013); and (2) Letter from the Futures Industry

Association, Request Pursuant to Commission Regulation 140.99 for Certain No-Action Relief from Part 46

Requirements (March 26, 2013).

Solely for the reasons set forth herein, the Division has determined to provide to non-SD/MSP counterparties certain

temporary no-action relief from the reporting requirements of Part 43, Part 45 and Part 46.

Page 2

Background

Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank

Act”)3 amended the Commodity Exchange Act to establish a comprehensive new regulatory

framework for swaps. Amendments to the Commodity Exchange Act included the addition of

provisions requiring the retention and reporting of data regarding swap transactions.4 Pursuant to

these newly added provisions, the Commission added to its regulations Part 43,5 which sets forth

rules for the real-time public reporting of swap transaction data; Part 45,6 which sets forth swap

data recordkeeping rules, as well as rules for the reporting of swap transaction data to a

registered swap data repository (“SDR”); and Part 46,7 which sets forth swap data recordkeeping

and reporting rules for pre-enactment swaps8 and transition swaps9 (collectively, “historical

swaps”).10

Swap counterparties have certain reporting obligations under each of Part 43, Part 45 and Part 46

(collectively, the “swap data reporting rules”). Pursuant to the compliance schedule set forth in

3 Pub. L. 111-203, 124 Stat. 1376 (2010)

and reporting rules for pre-enactment swaps8 and transition swaps9 (collectively, “historical

swaps”).10

Swap counterparties have certain reporting obligations under each of Part 43, Part 45 and Part 46

(collectively, the “swap data reporting rules”). Pursuant to the compliance schedule set forth in

3 Pub. L. 111-203, 124 Stat. 1376 (2010).

4 See, e.g., Section 2(a)(13), which establishes requirements for the real-time reporting and public availability of

swap transaction data; Section 21(b), which directs the Commission to prescribe standards for swap data

recordkeeping and reporting; and Sections 4r and 2(h)(5), which, among other things, establish reporting

requirements for swaps in effect as of the enactment of the Dodd-Frank Act, as well as swaps in effect after such

enactment but prior to the effective date for compliance with the Commission’s final swap data recordkeeping and

reporting rules.

5 Real-Time Public Reporting of Swap Transaction Data, 77 Fed. Reg. 1182 (January 9, 2012) (“Real-Time

Reporting Rule”).

6 Swap Data Recordkeeping and Reporting Requirements, 77 Fed. Reg. 2136 (January 13, 2012) (“Regulatory

Reporting Rule”).

7 Swap Data Recordkeeping and Reporting Requirements: Pre-Enactment and Transition Swaps, 77 Fed. Reg.

35200 (June 12, 2012) (“Historical Swap Reporting Rule”).

8 A “pre-enactment swap” is a swap entered into prior to the enactment of the Dodd-Frank Act (July 21, 2010), the

terms of which have not expired as of the date of enactment of the Dodd-Frank Act. See Historical Swap Reporting

Rule at 35226.

9 A “transition swap” is a swap entered into on or after the enactment of the Dodd-Frank Act (July 21, 2010), and

prior to the applicable compliance date for reporting historical swaps data pursuant to Part 46. See Historical Swap

Reporting Rule at 35227.

10 See also Part 44 of the Commission’s regulations (Interim Final Rule for Reporting Pre-Enactment Swap

Transactions, 75 Fed. Reg

5226.

9 A “transition swap” is a swap entered into on or after the enactment of the Dodd-Frank Act (July 21, 2010), and

prior to the applicable compliance date for reporting historical swaps data pursuant to Part 46. See Historical Swap

Reporting Rule at 35227.

10 See also Part 44 of the Commission’s regulations (Interim Final Rule for Reporting Pre-Enactment Swap

Transactions, 75 Fed. Reg. 63080 (October 14, 2010); and Reporting Certain Post-Enactment Swap Transactions, 75

Fed. Reg. 78892 (December 17, 2010)), which established certain record retention requirements for historical swaps,

pending the adoption of the Commission’s final rules, set forth at Part 46, regarding recordkeeping and reporting

with respect to historical swaps.

Page 3

the swap data reporting rules,11 and taking into account certain no-action relief previously issued

by Commission staff,12 a swap counterparty that is registered or required to be registered as a

swap dealer or a major swap participant is currently required to be in compliance with these

reporting obligations.13 A non-SD/MSP counterparty is required to be in compliance with its

reporting obligations under the swap data reporting rules by April 10, 2013.14

The Division has received requests, from market participants and other interested parties, to

provide no-action relief to extend the date by which a non-SD/MSP counterparty must be in

compliance with its reporting obligations under the swap data reporting rules. It has been

submitted that the development of swap data reporting systems has been more challenging,

technologically and operationally, for non-SD/MSP counterparties than for swap dealers and

major swap participants

rties, to

provide no-action relief to extend the date by which a non-SD/MSP counterparty must be in

compliance with its reporting obligations under the swap data reporting rules. It has been

submitted that the development of swap data reporting systems has been more challenging,

technologically and operationally, for non-SD/MSP counterparties than for swap dealers and

major swap participants. Concerns have also been expressed that the requirement to ensure that

all historical swaps data is reported, pursuant to Part 46, by the same date upon which reporting

obligations become effective pursuant to Part 43 and Part 45, has compounded the challenges

faced by non-SD/MSP counterparties in finalizing their swap data reporting infrastructure.

The Division notes that, in establishing a later compliance date for non-SD/MSP counterparties

under the swap data reporting rules, the Commission recognized that non-SD/MSP

counterparties could potentially have more limited technological and operational capability, than

swap dealers and major swap participants, upon which to leverage when developing their swap

data reporting systems. The later compliance date provided non-SD/MSP counterparties with an

additional period of time to finalize their internal reporting infrastructure and come into

compliance with their swap data reporting obligations. The Division notes further, however, that

while the swap data reporting rules established a single, later compliance date for reporting by

11 See Real-Time Reporting Rule at 1228; Regulatory Reporting Rule at 2197; and Historical Swap Reporting Rule

at 35226

ng infrastructure and come into

compliance with their swap data reporting obligations. The Division notes further, however, that

while the swap data reporting rules established a single, later compliance date for reporting by

11 See Real-Time Reporting Rule at 1228; Regulatory Reporting Rule at 2197; and Historical Swap Reporting Rule

at 35226. See also CFTC Staff Responds to Questions on Timing of Swap Dealer Registration Rules, Commission

Press Release 6348-12 (September 10, 2012), available at http://www.cftc.gov/PressRoom/PressReleases/pr6348-

12; and Division Q & A – On Start of Swap Data Reporting (October 9, 2012), available at

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/startreporting_qa_final.pdf.

12 See Time-Limited No-Action Relief for Swap Dealers from Certain Swap Data Reporting Requirements of Part

43, Part 45 and Part 46 of the Commission’s Regulations, Commission Letter No. 12-32 (November 19, 2012); and

No-Action Relief for Swap Dealers from Certain Swap Data Reporting Requirements of Part 43, Part 45 and Part 46

of the Commission’s Regulations, Due to Effects of Hurricane Sandy, Commission Letter No. 12-41 (December 5,

2012) (the “Hurricane Sandy No-Action Letter”).

13 Swap dealers were required to be in compliance with their reporting obligations with respect to: (1) credit swaps

and interest rate swaps (i) under Part 43 and Part 45, on December 31, 2012, and (ii) under Part 46, on January 30,

2013; and (2) equity swaps, foreign exchange swaps and other commodity swaps under (i) Part 43 and Part 45, on

February 28, 2013, and (ii) under Part 46, on March 30, 2013. Major swap participants were required to be in

compliance with their reporting obligations under all of the swap data reporting rules, with respect to all swap asset

classes, on February 28, 2013. See supra notes 11 and 12

2013; and (2) equity swaps, foreign exchange swaps and other commodity swaps under (i) Part 43 and Part 45, on

February 28, 2013, and (ii) under Part 46, on March 30, 2013. Major swap participants were required to be in

compliance with their reporting obligations under all of the swap data reporting rules, with respect to all swap asset

classes, on February 28, 2013. See supra notes 11 and 12. The Division notes that Commission staff has also issued

interpretive guidance and no-action relief relating to certain specific requirements of the swap data recordkeeping

and reporting rules, copies of which are available on the Commission’s website at www.cftc.gov. See also Final

Exemptive Order Regarding Compliance With Certain Swap Regulations, 78 Fed. Reg. 858 (January 7, 2013).

14 See supra notes 11 and 12.

Page 4

non-SD/MSP counterparties with respect to all swap asset classes, the Commission recognized,

in its establishment of the compliance schedule for swap dealers and major swap participants,

that due to differences in the levels of pre-existing automation and data normalization, coming

into compliance with reporting obligations with respect to equity swaps, foreign exchange swaps

and other commodity swaps could potentially be more challenging than coming into compliance

with reporting obligations with respect to interest rate swaps and credit swaps.15

In adopting the swap data reporting rules, the Commission also recognized non-SD/MSP

counterparties that are financial entities, as such term is defined in Section 2(h)(7)(C) of the

Commodity Exchange Act (“financial swap counterparties”),16 as being more likely than non-

SD/MSP counterparties that are not financial entities, as such term is defined in Section

2(h)(7)(C) of the Commodity Exchange Act (“non-financial swap counterparties”), to have pre-

existing technological capability upon which to leverage when developing their swap data

reporting systems

(h)(7)(C) of the

Commodity Exchange Act (“financial swap counterparties”),16 as being more likely than non-

SD/MSP counterparties that are not financial entities, as such term is defined in Section

2(h)(7)(C) of the Commodity Exchange Act (“non-financial swap counterparties”), to have pre-

existing technological capability upon which to leverage when developing their swap data

reporting systems. Noting that financial swap counterparties were more likely to have automated

systems in place to facilitate swap data reporting,17 in both Part 45 and Part 46 the Commission

allocated reporting responsibility for a swap transaction between a non-financial swap

counterparty and a financial swap counterparty, to the financial swap counterparty.18

15 See Regulatory Reporting Rule at 2194.

16 Pursuant to Section 2(h)(7)(C)(i) of the Commodity Exchange Act, the term “financial entity” means: (I) a swap

dealer; (II) a security-based swap dealer; (III) a major swap participant; (IV) a major security-based swap

participant; (V) a commodity pool; (VI) a private fund as defined in Section 202(a) of the Investment Advisers Act

of 1940; (VII) an employee benefit plan as defined in paragraphs (3) and (32) of Section 3 of the Employee

Retirement Income Security Act of 1974; or (VIII) a person predominantly engaged in activities that are in the

business of banking, or in activities that are financial in nature, as defined in Section 4(k) of the Bank Holding

Company Act of 1956. Pursuant to Section 2(h)(7)(C)(iii), the term “financial entity” shall not include an entity

whose primary business is providing financing, and uses derivatives for the purpose of hedging underlying

commercial risks related to interest rate and foreign currency exposures, 90 percent or more of which arise from

financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the

parent company or another subsidiary of the parent company

tity

whose primary business is providing financing, and uses derivatives for the purpose of hedging underlying

commercial risks related to interest rate and foreign currency exposures, 90 percent or more of which arise from

financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the

parent company or another subsidiary of the parent company.

Pursuant to Section 2(h)(7)(C)(ii) of the Commodity Exchange Act, the Commission has, for purposes of the

exception to the clearing requirement set forth at Section 2(h)(7)(A) of the Act (the “clearing exception”), exempted

from the definition of a “financial entity” a person that is a “financial entity” solely because of Section

2(h)(7)(C)(i)(VIII) of the Act, if such person: (i) is organized as a bank, as defined in Section 3(a) of the Federal

Deposit Insurance Act, the deposits of which are insured by the Federal Deposit Insurance Corporation; a savings

association, as defined in Section 3(b) of the Federal Deposit Insurance Act, the deposits of which are insured by the

Federal Deposit Insurance Corporation; a farm credit system institution chartered under the Farm Credit Act of

1971; or an insured Federal credit union or State-chartered credit union under the Federal Credit Union Act; and (ii)

has total assets of $10,000,000,000 or less on the last day of such person’s most recent fiscal year. See End-User

Exception to the Clearing Requirement for Swaps, 77 Fed. Reg. 42559, 42591 (July 19, 2012). Any such person

that the Commission has exempted from the definition of a “financial entity” for purposes of the clearing exception

shall be considered to be a non-financial swap counterparty for purposes of the reporting relief provided by the

Division in this no-action letter.

17 See Regulatory Reporting Rule at 2617

18 See Regulatory Reporting Rule at 2207; and Historical Swap Reporting Rule at 35229.

n

that the Commission has exempted from the definition of a “financial entity” for purposes of the clearing exception

shall be considered to be a non-financial swap counterparty for purposes of the reporting relief provided by the

Division in this no-action letter.

17 See Regulatory Reporting Rule at 2617

18 See Regulatory Reporting Rule at 2207; and Historical Swap Reporting Rule at 35229.

Page 5

No-Action Relief for Financial Swap Counterparties

Consistent with the Commission’s recognition, in adopting the swap data reporting rules, that

financial swap counterparties were more likely than non-financial swap counterparties to have

pre-existing systems in place to facilitate reporting, and given the additional period of time that

the later April, 10, 2013, compliance date has already provided to financial swap counterparties

to finalize their internal swap data reporting infrastructure, the Division believes that financial

swap counterparties have been provided with a sufficient amount of time to come into

compliance with their swap data reporting obligations, under Part 43 and Part 45, with respect to

interest rate swaps and credit swaps. However, consistent with the Commission’s recognition, in

establishing the compliance schedule for swap dealers and major swap participants under the

swap data reporting rules, that commencement of reporting could potentially be more

challenging with respect to equity swaps, foreign exchange swaps and other commodity swaps,

the Division believes that it is appropriate to provide financial swap counterparties with a limited

period of no-action relief to come into compliance with their Part 43 and Part 45 reporting

obligations with respect to these three swap asset classes

commencement of reporting could potentially be more

challenging with respect to equity swaps, foreign exchange swaps and other commodity swaps,

the Division believes that it is appropriate to provide financial swap counterparties with a limited

period of no-action relief to come into compliance with their Part 43 and Part 45 reporting

obligations with respect to these three swap asset classes.

Accordingly, the Division will not recommend that the Commission take enforcement action

against a financial swap counterparty for failing to report swap transaction data with respect to

equity swaps, foreign exchange swaps and other commodity swaps, pursuant to Part 43 or Part

45 of the Commission’s regulations, until 12:01 a.m. eastern time on May 29, 2013. 19 As a

condition of relying on this no-action relief, a financial swap counterparty must, by 12:01 a.m.

eastern time on June 29, 2013, backload and report to an SDR all swap transaction data, for the

period from April 10, 2013, to May 29, 2013, that the financial swap counterparty would have

been required to report pursuant to Part 45 in the absence of this no-action relief.

The Division also believes that providing financial swap counterparties with a transitional time

period to complete their reporting of historical swaps data pursuant to Part 46, will help to ensure

the smooth commencement of reporting by financial swap counterparties under the swap data

reporting rules. Accordingly, the Division will not recommend that the Commission take

enforcement action against a financial swap counterparty for failing to report historical swaps

data, for all swap asset classes, pursuant to Part 46 of the Commission’s regulations, until 12:01

a.m

ill help to ensure

the smooth commencement of reporting by financial swap counterparties under the swap data

reporting rules. Accordingly, the Division will not recommend that the Commission take

enforcement action against a financial swap counterparty for failing to report historical swaps

data, for all swap asset classes, pursuant to Part 46 of the Commission’s regulations, until 12:01

a.m. eastern time on September 30, 2013.20

19 This period of no-action relief is approximately equivalent to the period of no-action relief from reporting

obligations with respect to equity swaps, foreign exchange swaps and other commodity swaps, that the Division

provided to swap dealers in the Hurricane Sandy No-Action Letter.

20 Any swap entered into by a financial swap counterparty prior to 12:01 a.m. on April 10, 2013, for which the

financial swap counterparty has reporting responsibility, will be reportable by the financial swap counterparty in

accordance with Part 46 of the Commission’s regulations.

Page 6

No-Action Relief for Non-Financial Swap Counterparties

Consistent with the views expressed by the Commission when allocating reporting

responsibilities under the swap data reporting rules, the Division believes that non-financial swap

counterparties were likely to have had the least pre-existing technological capability upon which

to leverage when finalizing their swap data reporting infrastructure

on Relief for Non-Financial Swap Counterparties

Consistent with the views expressed by the Commission when allocating reporting

responsibilities under the swap data reporting rules, the Division believes that non-financial swap

counterparties were likely to have had the least pre-existing technological capability upon which

to leverage when finalizing their swap data reporting infrastructure. The Division believes that

providing a limited period of no-action relief from reporting obligations under Part 43 and Part

45, with respect to all swap asset classes, will enable non-financial swap counterparties to

consult further with the SDRs to which they will be reporting data, and with their swap dealer,

major swap participant and financial swap counterparties, regarding the issues faced and the

solutions implemented within a “live” reporting environment, so that non-financial swap

counterparties can leverage off of this experience when finalizing their own reporting systems

and procedures.

Accordingly, the Division will not recommend that the Commission take enforcement action

against a non-financial swap counterparty for failing to report swap transaction data pursuant to

Part 43 or Part 45 of the Commission’s regulations:

(i) With respect to interest rate swaps and credit swaps, until 12:01 a.m. eastern time on July

1, 2013, on the condition that, by 12:01 a.m. eastern time on August 1, 2013, the non-

financial swap counterparty backload and report to an SDR all transaction data, for

the period from April 10, 2013, to July 1, 2013, that the non-financial swap

counterparty would have been required to report pursuant to Part 45 in the absence of

this no-action relief; and

il 12:01 a.m. eastern time on July

1, 2013, on the condition that, by 12:01 a.m. eastern time on August 1, 2013, the non-

financial swap counterparty backload and report to an SDR all transaction data, for

the period from April 10, 2013, to July 1, 2013, that the non-financial swap

counterparty would have been required to report pursuant to Part 45 in the absence of

this no-action relief; and

(ii) With respect to equity swaps, foreign exchange swaps and other commodity swaps, until

12:01 a.m. eastern time on August 19, 2013, on the condition that, by 12:01 a.m.

eastern time on September 19, 2013, the non-financial swap counterparty backload

and report to an SDR all transaction data, for the period from April 10, 2013, to

August 19, 2013, that the non-financial swap counterparty would have been required

to report pursuant to Part 45 in the absence of this no-action relief.

Consistent with the relief from reporting obligations under Part 46 that the Division has provided

herein to financial swap counterparties, the Division believes that providing non-financial swap

counterparties with a transitional time period to complete their reporting of historical swaps data

pursuant to Part 46, will help to ensure the smooth commencement of reporting by non-financial

swap counterparties under the swap data reporting rules. Accordingly, the Division will not

recommend that the Commission take enforcement action against a non-financial swap

counterparty for failing to report historical swaps data, for all swap asset classes, pursuant to Part

46 of the Commission’s regulations, until 12:01 a.m. eastern time on October 31, 2013.21

21 Any swap entered into by a non-financial swap counterparty prior to 12:01 a.m. on April 10, 2013, for which the

non-financial swap counterparty has reporting responsibility, will be reportable by the non-financial swap

counterparty in accordance with Part 46 of the Commission’s regulations.

til 12:01 a.m. eastern time on October 31, 2013.21

21 Any swap entered into by a non-financial swap counterparty prior to 12:01 a.m. on April 10, 2013, for which the

non-financial swap counterparty has reporting responsibility, will be reportable by the non-financial swap

counterparty in accordance with Part 46 of the Commission’s regulations.

Page 7

Conclusion

The no-action positions taken by the Division herein with regard to financial swap counterparties

and non-financial swap counterparties, respectively, do not extend to other types of entities with

reporting obligations under the swap data reporting rules.22 Any entity that becomes a swap

dealer or a major swap participant is required to be in full compliance with its reporting

obligations under the swap data reporting rules by the date upon which it becomes a swap dealer

or major swap participant.23

The no-action positions taken by the Division herein in no way affect the recordkeeping

obligations of non-SD/MSP counterparties under the swap data reporting rules. Records

regarding any swap entered into by a non-SD/MSP counterparty prior to 12:01 a.m. eastern time

on April 10, 2013, must be maintained by such non-SD/MSP counterparty in accordance with

Part 46 of the Commission’s regulations. Records regarding any swap entered into by a non-

SD/MSP counterparty on or after 12:01 a.m. on April 10, 2013, must be maintained by such non-

SD/MSP counterparty in accordance with Part 43 and Part 45 of the Commission’s regulations.

In order to comply with the recordkeeping requirements of Part 45, a non-SD/MSP counterparty

must, by April 10, 2013, obtain a CFTC Interim Compliant Identifier (“CICI”)

regarding any swap entered into by a non-

SD/MSP counterparty on or after 12:01 a.m. on April 10, 2013, must be maintained by such non-

SD/MSP counterparty in accordance with Part 43 and Part 45 of the Commission’s regulations.

In order to comply with the recordkeeping requirements of Part 45, a non-SD/MSP counterparty

must, by April 10, 2013, obtain a CFTC Interim Compliant Identifier (“CICI”). 24

This letter, and the no-action positions taken herein, represent the views of the Division only, and

do not necessarily represent the positions or views of the Commission or of any other division or

22 See, e.g., Regulation 45.3(a), which requires swap creation data for a swap executed on or pursuant to the rules of

a swap execution facility or designated contract market to be reported by such swap execution facility or designated

contract market, as soon as technologically practicable after execution. The obligation of a swap execution facility

or designated contract market to report swap creation data for swaps executed on a swap execution facility or

designated contract market is not affected by the no-action relief provided herein.

23 An entity will become a swap dealer on the earlier of: (i) the date upon which it submits a complete application

for registration as a swap dealer; or (ii) the date that is two months after the end of the month in which the entity’s

swap dealing activities exceed, in the aggregate, one of two prescribed gross notional amount thresholds, on which

date the entity will be required to apply to be registered as a swap dealer

ap dealer on the earlier of: (i) the date upon which it submits a complete application

for registration as a swap dealer; or (ii) the date that is two months after the end of the month in which the entity’s

swap dealing activities exceed, in the aggregate, one of two prescribed gross notional amount thresholds, on which

date the entity will be required to apply to be registered as a swap dealer. An entity will become a major swap

participant on the earlier of: (i) the date upon which it submits a complete application for registration as a major

swap participant; or (ii) the date that is two months after the end of the quarter in which the entity meets the criteria

of a major swap participant as a result of its swap activities in such quarter, on which date the entity will be required

to apply to be registered as a major swap participant. See Further Definition of ‘Swap Dealer,’ ‘Security-Based’

Swap Dealer,’ ‘Major Swap Participant,’ ‘Major Security-Based Swap Participant,’ and ‘Eligible Contract

Participant,’ 77 Fed. 30596 (May 23, 2012).

24 See Regulatory Reporting Rule at 2204. See also Division of Market Oversight and Office of Data and

Technology Advisory Regarding Upcoming Legal Entity Identifier Deadline (March 15, 2013), available at

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/dmo_odtadvisory.pdf; and Division Q & A –

On Start of Swap Data Reporting (October 9, 2012), available at

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/startreporting_qa_final.pdf.

A CICI may be obtained through the CICI Utility web portal available at www.ciciutility.org.

adline (March 15, 2013), available at

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/dmo_odtadvisory.pdf; and Division Q & A –

On Start of Swap Data Reporting (October 9, 2012), available at

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/startreporting_qa_final.pdf.

A CICI may be obtained through the CICI Utility web portal available at www.ciciutility.org.

Page 8

office of the Commission’s staff. The no-action positions taken herein do not excuse affected

persons from compliance with any other applicable requirements of the Commodity Exchange

Act or the Commission’s regulations thereunder. As with all no-action letters, the Division

retains the authority to condition further, modify, suspend, terminate or otherwise restrict the

terms of the no-action relief provided herein, in its discretion.

If you have any questions concerning this correspondence, please contact Nora Flood, Attorney

Advisor, at (202) 418-5354.

Very truly yours,

Richard A. Shilts

Acting Director

Division of Market Oversight