ARTICLE
13 October 2014

CFTC Issues Extension Of No-Action Relief Granted To Certain CDS Clearing-Related Swaps

SS
Shearman & Sterling LLP

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On September 29, 2014, the CFTC's Division of Market Oversight announced an extension of no-action relief previously granted on December 31, 2013.
United States Finance and Banking

On September 29, 2014, the US Commodity Futures Trading Commission's ("CFTC") Division of Market Oversight announced an extension of no-action relief previously granted on December 31, 2013, providing time-limited relief relating to certain occasional, off-facility, cleared credit default swaps ("CDS") entered into pursuant to a derivative clearing organization's rules related to its price submission process for determining end-of-day settlement prices for cleared CDSs ("CDS Settlement Price Process"). Under the no-action letter, the CFTC will not commence an enforcement action against any clearing member of a derivative clearing organization for entering into a swap through the CDS Settlement Price Process and not through a swap execution facility or a designated contract market. In addition, counterparties for such swaps will be relieved of their obligation to report swap data under the CFTC no-action letter. The extension of the no-action relief will expire on September 30, 2015.

The full text of the CFTC no-action letter is available at:

http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-119.pdf.

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