The CFTC recently issued no-action relief from certain swap data reporting requirements for swaps entered into between affiliated counterparties.  The relief is conditioned upon several factors, which we have summarized in greater detail in the table below. 

In general, Letter 13-09 grants relief from: historical swap reporting (Part 46); "regular" swap reporting under Part 45 for swaps entered into on or after April 10, 2013; and reporting requirements under the end-user exception (Part 50).  The following is a list of the specific regulatory reporting requirements for which Letter 13-09 grants relief:

  • CFTC Rule 45.3(d)(1) - Primary economic terms data reporting
  • CFTC Rule 45.3(d)(3) - Confirmation data reporting
  • CFTC Rule 45.4(c)(1)(ii) - Life cycle event and state data reporting
  • CFTC Rule 45.4(c)(2)(ii) - Current daily mark valuation reporting
  • CFTC Rule 45.5 - Unique swap identifier requirements
  • CFTC Rule 46.3(a) - Reporting of historical swaps in existence on or after 4/25/2011
  • CFTC Rule 46.3(b) - Reporting of historical swaps expired or terminated prior to 4/25/2011
  • CFTC Rule 50.50 - Reporting of swaps for which end-user exception central clearing has been claimed

Additionally, it is important to note that the no-action relief granted for swaps that involve wholly-owned subsidiaries differs from the relief granted for swaps that involve majority-owned subsidiaries. 

By way of prime example, in the majority-owned subsidiary context, there is a new quarterly reporting requirement, whereby a non-SD/non-MSP reporting counterparty relying on the Letter 13-09 relief must report all swap data to a swap data repository ("SDR") no later than 30 days following the end of each fiscal quarter.  This new quarterly reporting requirement will commence on June 30, 2013.

Under Letter 13-09, the relief is available where the affiliation arises by virtue of either:

  1. A parent-subsidiary relationship between the affiliates; or
  2. A brother-sister relationship (i.e., common parent relationship) between the affiliates. 

In either case, the affiliation can be direct or indirect. Finally, the relief granted in Letter 13-09 does not apply to any swaps for which the affiliated counterparties have elected to claim the inter-affiliate exemption from central clearing pursuant to CFTC Rule 50.52.


In this section of the posting, we will provide a more detailed summary of the specific relief granted under Letter 13-09.  To facilitate a "snapshot view" of that letter, we have prepared a table that summarizes the conditions of the relief in respect of the Part 45 and Part 50 reporting requirements listed above - we address Part 46 in the final paragraph that immediately follows the table.

Click here to view table.

Finally, with respect to Part 46, the CFTC clarified that a reporting counterparty must satisfy the conditions summarized in the first four rows of the table.  Furthermore, any such reporting counterparty must adhere to the recordkeeping requirements of the Part 46 rules.