The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) has granted no-action relief to certain intermediaries located outside the United States. As background, CFTC Regulation 3.10(c)(3)(i) provides an exemption from registration as a commodity pool operator (CPO), commodity trading advisor (CTA) or introducing broker (IB) to persons located outside the United States that act only on behalf of persons located outside the United States. To avail themselves of this exemption, these non-US persons must submit their commodity interest transactions for clearing through a registered futures commission merchant.

DSIO’s no-action relief extends this exemption to include swaps that are not required to be cleared. As such, non-US persons that act only on behalf of non-U.S. persons may engage in such uncleared swaps without registering as a CPO, CTA or IB.

CFTC Letter No. 16-08 is available here.