The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight (collectively, Divisions) have issued CFTC Letter No. 15-65, which indefinitely extends the no-action relief from certain recordkeeping requirements under CFTC Regulation 1.35(a), which was previously provided in CFTC Letter No. 14-147. (CFTC Letter No. 14-147 was discussed in detail in the December 19, 2014 edition of Corporate and Financial Weekly Digest.)
In CFTC Letter No. 15-65, the Divisions reaffirm that they will not recommend an enforcement action against a commodity trading advisor (CTA) that is a member of a designated contract market or swap execution facility for failing to comply with the oral recordkeeping requirements under Regulation 1.35(a). In addition, the Divisions will not recommend an enforcement action against any market participant that is subject to Regulation 1.35(a), on the grounds that its records of oral and written communications that lead to the execution of a transaction are not linked to or otherwise identified with a particular transaction. This no-action relief will expire on the effective date of any final CFTC action regarding the proposed amendments to Regulation 1.35(a), which were published for comment in November 2014 (79 Fed. Reg. 68140 (Nov. 14, 2014)).
CFTC Letter No. 15-65 is available here.