CFTC No-Action Relief for Securitizations from Commodity Pool Operator Registration
On December 7, the CFTC provided guidance to securitization vehicles on whether they may be excluded from the definition of commodity pool. The CFTC will not recommend taking enforcement action against the operators of certain securitization vehicles that have not and will not issue new securities on or after October 12, 2012 for failure to register as a commodity pool operator, provided certain criteria are satisfied. Also, for securitization vehicles that cannot claim relief either under this letter or CFTC Letter No. 12-14, which was issued on October 11, 2012, the CFTC will not recommend enforcement action against operators of securitization vehicles for failure to register as a commodity pool operator until March 31, 2013. CFTC Release. No-Action Letter.
CFTC No-Action Relief for Mortgage REIT Operators from Commodity Pool Operator Registration
On December 7, the CFTC issued a no-action letter to mortgage real estate investment trusts which provides that the Division of Swap Dealer and Intermediary Oversight will not recommend that the CFTC take enforcement action against the operators of mortgage REITs for failure to register as commodity pool operators under the Commodity Exchange Act and the CFTC’s regulations, provided that the mortgage REIT satisfies certain criteria including compliance with a de minimis threshold. CFTC Release. No-Action Letter.
CFTC No-Action Relief from Post-Allocation Swap Timing Requirements
On December 13, the CFTC issued a letter providing relief from the post-allocation swap timing requirement of § 45.3(e)(ii)(A). The no-action letter permits parties to a swap to fulfill reporting obligations for post-allocation swaps in a timely manner while acknowledging jurisdictional, global time zone, and legal holiday differences. The relief expires no later than June 30, 2013. CFTC Release. No-Action Letter.
CFTC No-Action Relief for Futures Commissions Merchants
On December 11, the CFTC issued a no-action letter that provides certain futures commission merchants (FCMs) with limited relief surrounding the requirement that chief compliance officers of such FCMs prepare and submit an Annual Report, pursuant to Commission Regulation 3.3. The relief applies to FCMs that: (i) were registered with the CFTC as of June 4, 2012 and (ii) are currently regulated by a U.S. prudential regulator or registered with the SEC. CFTC Release. No-Action Letter.
CFTC No-Action Relief for Reporting Entities and Reporting Counterparties
On December 10, the CFTC issued a letter providing reporting parties under Parts 20, 45 and 46 of the CFTC’s regulations with time-limited no-action relief from requirements to report certain identifying information regarding their non-reporting counterparties. The no-action letter addresses Legal Entity Identifiers, other identifying swap data fields pursuant to Parts 45 and 46, and large swap trader counterparty identification information pursuant to Part 20. The relief expires no later than June 30, 2013. CFTC Release. No-Action Letter.
CFTC No-Action Relief for Swap Dealers and Major Swap Participants
On December 7, the CFTC issued limited no-action relief to swap dealers and major swap participants from compliance with the prohibition in Regulation 23.22(b) against permitting a person who is subject to a statutory disqualification to effect or be involved in effecting swaps on behalf of the swap dealer or major swap participant. CFTC Release. No-Action Letter.