Preliminary Reports

CFTC asks for comments on swap dealer de minimis exception preliminary report. The Division of Swap Dealer and Intermediary Oversight and the Office of the Chief Economist of the US Commodity Futures Trading Commission issued a preliminary report on the swap dealer de minimis exception. Under CFTC guidelines, market participants who exceed US$8 billion in gross national swap dealing activity over a 12-month period must register with the CFTC as swap dealers during the phase-in period that is now in effect. This phase-in period is scheduled to end, and the threshold will fall, to US$3 billion in December 2017 unless the CFTC amends the de minimis exception. Comments on the preliminary report can be submitted electronically though the CFTC’s Comments Online process through January 19, 2016. (11/18/2015) CFTC press release.

No-Action Relief

CFTC Divisions grant conditional no-action relief to Wells Fargo Bank. The CFTC Division of Swap Dealer and Intermediary Oversight, the Division of Clearing and Risk, and the Division of Market Oversight (the Divisions) granted no-action relief to Wells Fargo Bank, N.A., a registered swap dealer, as to certain transaction-level requirements for certain swaps with non-US counterparts. (11/20/2015) CFTC Letter No. 15-64.

CFTC Divisions give time-limited no-action relief for certain affiliated counterparties. The CFTC’s Divisions of Clearing and Risk and Market Oversight each extended previously-issued no-action relief for certain affiliated swap transactions. (11/17/2015) CFTC Press Release.

Other Developments

CFTC approves proposed rule on automated trading. The CFTC has unanimously approved proposed rules that mark a comprehensive regulatory response to the evolution of automated trading on US designated contract markets. The proposed rules, together known as Regulation Automated Trading or Regulation AT, denote a series of risk controls, transparency measures, and other safeguards to enhance the US regulatory regime for automated trading. The notice of proposal will be open for a 90-day public comment period.

(11/24/2015) CFTC press release. See also Reuters story.

CFTC is discontinuing its collecting and issuing of reports on Index Investment Data. The CFTC announced that it will be discontinuing the collection and release of the monthly Index Investment Data Report (IID Report) for certain commodity index position data. This data collection predates the enhanced reporting regime that was implemented by the Dodd-Frank Act and the IID Reports are not being utilized when compared to larger CFTC reporting initiatives. The final release of the IID Report was issued on November 25, 2015 for data collected from the month of October 2015. (11/20/2015) CFTC press release.