On August 4, 2016, the CFTC issued a Final Response to the United States District Court for the District of Columbia Remand Order in Securities Industry and Financial Markets Association, et al. v. United States Commodity Futures Trading Commission, which was a challenge by industry groups to the CFTC’s guidance as to the application of certain requirements to cross-border swaps transactions. In a decision issued on September 16, 2014, the District Court denied the plaintiffs’ demand that the CFTC be enjoined from enforcing extraterritorially Title VII of the Dodd-Frank Act and related regulations, and upheld the CFTC’s 2013 cross-border guidance. The District Court did direct the CFTC to further explain and consider the costs and benefits of certain rules.
Accordingly, in March 2015, the CFTC published an Initial Response to the Remand Order, which further explained the CFTC’s earlier consideration of costs and benefits of these rules and solicited comments. The CFTC received a number of comments. The Final Response issued by the CFTC on August 4 contains further consideration of costs and benefits and explains the CFTC’s approach to international harmonization of swaps regulations to carry out the Dodd-Frank reforms in cooperation with global regulators and to promote stable and healthy markets.
The CFTC’s Divisions of Swap Dealer and Intermediary Oversight, Clearing and Risk and Market Oversight also issued a timelimited no-action letter that extends relief, which was originally provided in November 2013 and subsequently extended, to swap dealers registered with the CFTC that are established under the laws of jurisdictions other than the United States from certain transaction-level requirements under the Commodity Exchange Act. The relief is extended until the earlier of September 30, 2017 and the effective date of any CFTC action with respect to matters addressed by the DSIO advisory.
The CFTC press release, which includes links to the CFTC final response and no-action letter, as well as related statements by CFTC Chairman Timothy Massad and Commissioner J. Christopher Giancarlo, is available at: