On July 30th, Bloomberg reported the CFTC has sent regulatory sweep letters to five banks. The letters seek information on whether the banks have removed parent company guarantees from cross-border swap contracts in order to avoid Dodd-Frank Act reporting and clearing requirements. Regulatory Sweep.
LEI Provider Order Extended
On July 28th, the CFTC issued an Amended and Restated Order extending the designation of the Depository Trust and Clearing Corporation and Society for Worldwide Interbank Financial Telecommunication joint venture as the provider of legal entity identifiers under the Commodity Exchange Act and regulations. CFTC Press Release.
Relief from CPO and CTA Registration Requirements
On July 25th, the CFTC’s Division of Swap Dealer and Intermediary Oversight granted no-action relief to an entity and its affiliates for their failure to register as commodity pool operators of pools holding volume production payment instruments, which issue debt or debt-like instruments, and which use swaps to hedge commodity market risk and interest rate exposure. Relief from the requirements to register as commodity trading advisors was also granted.