On November 28, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) and Division of Market Oversight (DMO) each extended previously issued no-action relief from clearing and trade execution requirements for certain inter-affiliate transactions. As discussed in the November 20, 2015 edition of the Corporate & Financial Weekly Digest, DMO previously provided time-limited no-action relief exempting certain affiliates from the trade execution requirement. This relief is available to affiliate counterparties that satisfy CFTC regulation 50.52(a) but not 50.52(b), (c) or (d), and are not exempt from clearing. DMO has extended its relief to December 31, 2017.
The DCR relief permits eligible affiliate counterparties to continue to rely on the alternative compliance framework provided in CFTC regulation 50.52(b)(4)(ii)-(iii) until the earlier of 1) December 31, 2017; and 2) with respect to a particular jurisdiction, 60 days after the date on which the CFTC announces that it has made a comparability determination described in regulation 50.52(b)(4)(i).
CFTC Staff Letter 16-80 is available here.
CFTC Staff Letter 16-81 is available here.