CFTC Provides No-Action Relief to Swap Dealers and Major Swap Participants Regarding Certain Recordkeeping Obligations

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The CFTC has provided time-limited no-action relief for swap dealers,  or SDs, and major swap participants, or  MSPs, concerning certain recordkeeping obligations under Part 23 of the CFTC’s regulations.

The no-action letter will delay until March 31, 2013, the compliance date for the following provisions:

  • The requirement that SDs and MSPs make and keep records of all oral communications related to pre-execution swap trade information (and communications that lead to the conclusion of a related cash or forward transaction), pursuant to Commission Regulations 23.202(a) and (b);
  • The requirement that SDs and MSPs maintain all transaction records and daily trading records in a manner “identifiable and searchable” by transaction and counterparty, pursuant to Commission Regulations 23.201(a)(1), 23.202(a) and 23.202(b);
  • The requirement that SDs and MSPs use a Coordinated Universal Time timestamp when recording quotations prior to and at the time of execution of a swap, pursuant to Commission Regulations 23.202(a)(1)(ii), (a)(2)(iv), (b)(3) and (b)(4); and
  • The requirement that SDs and MSPs retain swap records at their principal places of business or such other principal offices as designated by the SDs or MSPs.

The relief provided in the no-action letter is applicable to all SDs and MSPs.

Check dodd-frank.com frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.

Topics:  CFTC, Dodd-Frank, Major Swap Participants, Recordkeeping Requirements, Swap Dealers, Swaps

Published In: Administrative Agency Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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