Staff of the Commodity Futures Trading Commission extended through September 30, 2017, no-action relief previously granted five times to non-US swap dealers that transact over-the-counter swaps with non-US persons that arrange, negotiate or execute such transactions through personnel or agents located in the United States. Under the relief, such non-US swap dealers are not required to comply with CFTC-mandated transaction-level requirements related to such swaps. (Transaction-level requirements address mandatory clearing and swap processing; margining and segregation for uncleared swaps; mandatory trade execution; swap trading relationship documentation; real-time reporting; trade confirmation; daily trading records; and external business conduct standards, among other matters.) In November 2013, the CFTC issued an advisory, which said that if a non-US swap dealer regularly uses personnel or agents in the United States to arrange, negotiate or execute swaps with non-US persons, the non-US swap dealer must comply with its transaction-level requirements. In announcing the staff relief, CFTC Chairman Timothy Massad indicated that he expected to request the Commission “consider a rule to begin to address the ‘arrange, negotiate or execute’ issues raised by the no-action relief” this fall. Contemporaneously, the CFTC issued a final response to the District Court’s remand order in September 2014 requiring it to consider the costs and benefits of the extraterritorial application of ten rules contained in eight swaps-related rulemakings. (Click here for background regarding this court decision in the article, “Federal Court Tosses Out Challenges to the CFTC Cross-Border Guidance and Policy Statement” in the September 21, 2014 edition of Bridging the Week.) Although CFTC Commissioner J. Christopher Giancarlo acknowledged in a dissent that the CFTC “appears to have addressed” the court’s requirements in its response, he indicated that “[n]evertheless it must be noted that the Commission has repeatedly failed to coordinate effectively with foreign regulators to ‘implement global standards' in financial markets as agreed to by the G-20 leaders in Pittsburgh in 2009.”