On March 18th, the CFTC's Division of Clearing and Risk issued a no-action letter that provides relief from required clearing for a limited set of swaps that are generated as part of a multilateral portfolio compression exercise. The Division will not recommend enforcement action against any person for failing to clear (1) swaps that are amended in order to reduce notional value as part of a multilateral portfolio compression exercise and (2) new swaps that are entered into to replace the original swaps as a result of a multilateral portfolio compression exercise in order to reduce notional exposures or aggregate outstanding gross notional exposure, provided that the original swaps were executed prior to the date on which the counterparties must begin complying with the clearing requirement (and therefore, not required to be cleared). Both the multilateral portfolio compression exercise and the resulting amended or replacement swaps must meet certain specified conditions. CFTC Press Release.