Regulatory Relief

CPO Registration Relief Granted to Non-Profit.

On March 19th, the Division of Swap Dealer and Intermediary Oversight posted its February 28, 2014 letter in which it took a no-action position with respect to the operation of certain collective trading vehicles by either of two corporations (A and B) entirely controlled by a non-profit corporation (C) that is the coordinating organization for a denomination's churches. The collective trading vehicles would commingle assets of church plans (within the definition of Regulation 4.5) associated with the denomination's churches, together with endowments and other assets of certain non- profit corporations entirely controlled by C. Although the collective trading vehicles would be pools, the Division believed that requiring commodity pool operator registration would serve no substantial regulatory purpose because persons who would be subject to background checks and proficiency examinations would already have been vetted and hired by A, B or C, and because any Disclosure Document would be delivered by A or B to the other or to C. CFTC Letter No. 14-28.


CPO Registration Relief for Educational Purposes.

On March 18th, the Division of Swap Dealer and Intermediary Oversight confirmed the availability of CFTC Letter 00-10, which provided commodity pool operator registration relief to a university's cooperative extension service, its agents and employees, permitting them to offer courses that would allow certain students to trade commodity interests through participation in a trading club, notwithstanding certain amendments to the course and trading club criteria. CFTC Letter No. 14-29.


Other Developments

CFTC Gives New Swaps Trades Data a Closer Look.Other Developments

In an effort to improve and better understand its own swaps-market data, the CFTC began looking this week at a wealth of information collected and provided by companies in the financial services industry, including Depository Trust & Clearing Corp., and others. The problems the agency hopes to correct include inconsistent and inaccurate reporting methods from the agency data warehouses that feed swaps trades information back to the Commission itself. Data.


CFTC Will Most Likely Postpone Overseas Derivatives Trading Rules.

The CFTC is expected to postpone new European derivatives trading restrictions set to go into effect on March 24, according to the Wall Street Journal. The delay is most likely an effort to give European officials more time to responsibly develop their own regulations, and to soothe tensions between domestic and overseas rules. The core issue of the restrictions is whether U.S. banks operating overseas must follow the domestic swaps rules when abroad. There is no word on how long these delays will last. Postponement.


CFTC Issues Request for Public Comment on Swap Data Reporting.

The CFTC issued a request for public comment in the Federal Register on March 19, 2014. The request for comment relates to the Commission's swaps data recordkeeping and reporting requirements, specifically under part 45 of the CFR, which requires reporting entities to submit swap transaction data via electronic reporting to the agency for analysis. The request for public comment consists of roughly 70 questions which will help inform the Commission's further efforts to improve the quality of their swap data reporting. Request.