All Letters

12-01 ; Regulations 4.34 and 4.35; Interpretation
The Division of Swap Dealer and Intermediary Oversight issued an interpretation regarding the time period for which past performance is required to be disclosed by persons required to register as CTAs because they engage in off-exchange retail foreign currency transactions (“retail forex”). Such persons (“Forex CTAs”) are required to disclose performance information for the period beginning October 18, 2010, the date upon which the Commission’s regulations governing retail forex became effective. A Forex CTA that chooses to present past performance information for any period of time prior to October 18, 2010 must do so in accordance with the time period as specified in Regulation 4.35(a)(5), must include all accounts directed by the Forex CTA, must present the information in the format specified in Regulation 4.35, and must have and maintain adequate books and records to substantiate the information.

12-02 ; Part 20: Large Trader Reporting for Physical Commodity Swaps; No-Action
The Division of Market Oversight issued a letter to market participants providing temporary no-action relief for less than fully compliant reporting of positions based on ownership under the CFTC’s large trader reporting system for physical commodity swaps and swaptions. This temporary relief is intended to provide sufficient time for the industry to transition to fully compliant reporting for positions based on ownership by July 27, 2012. As a condition of this relief, market participants must submit, by July 30, 2012, fully compliant reports dating back to July 2, 2012.

12-03 ; Part 4: Registration and Compliance Obligations for CPOs and CTAs; No-Action
The Division of Swap Dealer and Intermediary Oversight (“the Division”) of the Commodity Futures Trading Commission (“CFTC”) today issued a notice of the availability of time-limited no action relief for commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) who would have been exempt or excluded from registration but for the recent amendments to Regulations 4.13 and 4.5. The Division has determined not to recommend that the Commission take an enforcement action against CPOs or CTAs for failure to register as such until December 31, 2012, subject to certain requirements, including the filing of a notice with the Division. Once filed, this no-action relief is effective immediately.

12-04 ; Part 20: Large Trader Reporting for Physical Commodity Swaps; No-Action
The Division of Market Oversight issued a letter to market participants providing temporary no-action relief for reporting by non-clearing member swap dealers under the CFTC’s large trader reporting system for physical commodity swaps and swaptions. This temporary relief is intended to provide sufficient time for non-clearing member swap dealers to transition to fully compliant reporting by 60 days after the Commission’s deadline for entities to apply to register as swap dealers. In addition, the letter provides a further six months of no-action relief to non-clearing member swap dealers that satisfy the conditions of Section 20.10(e) of the Commission’s regulations.

12-05 ; Part 151: Position Limits for Futures and Swaps; No-Action
The Division of Market Oversight issued a letter to market participants providing temporary no-action relief in order to give effect to the Commission’s commitment to “coordinate the disposition” of a May 30, 2012 notice of proposed rulemaking regarding aggregation (“Aggregation Notice”) with the implementation of position limits under part 151 (“Position Limits Rule”), as well as “to provide an orderly transition to the compliance dates” for the Position Limits Rule. The no-action relief provides two alternative methods for compliance: (1) as if the Position Limits Rule were amended to include the provisions proposed in the Aggregation Notice; and (2) in conformity with the dis-aggregation criteria specified in the no-action relief. This temporary relief is intended to provide sufficient time for persons to transition to fully compliant aggregation by 60 days after the earlier of the date the Commission publishes a rule finalizing changes to the Commission’s aggregation policy or the date the Commission issues an order declining to take further action on the Aggregation Notice. The relief is time limited to no later than December 31, 2012.

12-06 ; Regulation 32.3 Trade Options; No-Action
The staff of the Division of Market Oversight issued a no-action letter providing that, for a limited time, market participants can rely on the trade option exemption in CFTC regulation 32.3 without complying with specified provisions thereof. The no action letter is effective until the earlier of December 31, 2012, or the effective date of any final action taken by the Commission in response to comments on the Trade Option Exemption Interim Final Rules (77 FR 25320). To rely on the no-action relief, market participants must comply with: (1) the conditions for qualifying as a “trade option” (§ 32.3(a)); (2) speculative position limits (§ 32.3(c)(2)); and (3) prohibitions on fraud, manipulation and other abusive trade practices (§ 32.3(d)).

12-07 ; Rule 140.98; Interpretation
The Division of Market Oversight issued an interpretation addressing whether, under Part 151 of the Commission’s regulations, an electric company may treat as bona fide hedging transactions certain derivative transactions that reduce the price risk associated with its unfilled anticipated requirements for natural gas, even though it has entered into some long-term, firm purchases of natural gas at an unfixed price. The interpretation notes that unfilled anticipated requirements may be recognized as the basis of a bona fide hedging position or transaction under Commission Regulation 151.5(a)(2)(ii)(C) when a commercial enterprise has entered into long-term, unfixed-price supply or requirements contracts as the price risk of such “unfilled” anticipated requirements is not offset by an unfixed price forward contract as the price risk remains with the commercial, even though the commercial enterprise has contractually assured a supply of the commodity. Instead, the price risk continues until the forward contract’s price is fixed; once the price is fixed on the supply contract, the commercial enterprise no longer has price risk and the derivative position, to the extent the position is above an applicable speculative position limit, must be liquidated in an orderly manner in accordance with sound commercial practices.

12-08 ; Regulation 39.13(g)(8)(ii); Interpretation
The Division of Clearing and Risk issued a letter interpreting Regulation 39.13(g)(8)(ii) (customer margin rule) to clarify that registered derivatives clearing organizations, in establishing customer initial margin requirements, may preserve historical practices by which customer initial margin requirements are based on the type of customer account and reflect the application of prudential standards that result in FCMs collecting customer initial margin at levels commensurate with the risk presented by each type of customer account.

12-09 ; 1.73(a)(2)(i), 1.73(a)(2)(iv), 1.73(a)(2)(v); No-Action
Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) today announced an extension of time for compliance in order to provide additional time for market participants to coordinate on the communication of limits for give-ups and bunched orders for futures and swaps. This extension of time is intended to provide sufficient time to transition to fully compliant pre-trade screening no later than June 1, 2013. Additionally, DCR also announced the issuance of an extension of time for compliance from pre-trade screening requirements for those transactions executed on DCMs that do not have a system permitting FCMs to set pre-execution limits, until the earlier of the date on which the DCM implements such a system, or June 1, 2013.

12-10 ; 4d(f)(2), (3), (4), and (6); No-Action
Division of Clearing and Risk staff issued a no action preserving the regulatory status quo with respect to swaps cleared by a DCO (and related) collateral which expires on the compliance date for Part 22 regulations, November 8, 2012.

12-11 ; Section 4(c)(6); No-Action
Staff from the Division of Market Oversight, Division of Swap Dealer and Intermediary Oversight, and the Division of Clearing and Risk issued a No-Action Relief letter preserving the regulatory status quo with respect to provisions of the CEA that may apply to RTOs, ISOs, and/or their participants. The Commission is still considering comments regarding the Proposed Order to Exempt Specified Transactions Authorized by a Tariff or Protocol Approved by the Federal Energy Commission or the Public Utility Commission of Texas from Certain Provisions of the Commodity Exchange Act (77 FR 52137). The relief granted terminates upon the earliest of the Commission taking final action on the Proposed Order or March 31, 2013.

12-12 ; No action with respect to all provisions except general enforcement provisions; No-Action
The letter maintains the regulatory status quo with respect to the group of petitioners that have requested a an Order pursuant to Section 4(c)(6) of the CEA for certain government and cooperatively-owned electric utilities. The no-action letters will permit these market participants to continue to operate while the Commission considers the comments received on the proposed Orders issued in response to the respective petitions (the comment period has closed).

12-13 ; Section 1a(10) and Commission Regulation 4.10(d); Interpretation
The Division of Swap Dealer and Intermediary Oversight determined that equity real estate investment trusts that satisfy certain criteria are outside the definition of commodity pool as that term is defined in Section 1a(10) of the Commodity Exchange Act and Commission Regulation 4.10(d). The requirements include deriving its income primarily from the ownership and operation of real estate and use derivatives for the limited purpose of mitigating their exposure to changes in interest rates or fluctuations in currency; complying with applicable provisions of the Internal Revenue Code; and identifying itself as an equity REIT on applicable Internal Revenue Service forms. The relief is self executing.

12-14 ; Section 1a(10) of the CEA and Commission Regulation 4.10(d); Interpretation
The Division of Swap Dealer and Intermediary Oversight issued an interpretative letter excluding certain securitization vehicles from the definition of commodity pool, subject to certain conditions.

12-15 ; CEA Sections 4d, 4e, 4m, 4s(b)(6); and CFTC Part 3 Regulations; No-Action
The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) issued several registration “no-action” positions. In the first position, DSIO announced that it will not recommend that the CFTC commence an enforcement action against any person who, solely by virtue of its swaps activity, would be required to register as an introducing broker, commodity pool operator, commodity trading advisor, AP of any of the foregoing or of an FCM, floor broker or floor trader, provided that on or before December 31, 2012, the person applies for registration. In the second position, DSIO announced a similar registration no-action position for any person who finds themselves required to register solely because of their involvement with the transition of certain contracts on ICE and NYMEX to clearing as commodity futures and options, provided that on or before December 31, 2012, the person applies for registration. In the third position, DSIO announced a no-action position that will permit an SD or MSP to employ a person as an AP, notwithstanding that the person is subject to a statutory disqualification, provided that the SD or MSP requests and receives from the National Futures Association advice that, notwithstanding the disqualification, the person would have been granted registration as an AP.

12-16 ; Regulation 1.3(ggg)(4); No-Action
The letter provides that DSIO will not recommend that the Commission take enforcement action against any person for failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4), a swap that (i) references an exempt commodity or agricultural commodity, (ii) is executed prior to December 31, 2012, and (iii) is either cleared on a derivatives clearing organization registered with the Commission, or entered into contingent upon its being subsequently exchanged for and cleared as a futures position as part of an exchange for related position transaction conducted in accordance with a DCM’s rules.

12-17 ; 1a(18)(A); 2(e); 13(a); 17 C.F.R. § 23.430; No-Action; Interpretation
Interpretations and no-action positions related to ECP status.

12-18 ; 1.3(ggg)(4); No-Action
The letter provides that the Division of Swap Dealer and Intermediary Oversight will not recommend that the Commission commence an enforcement action against a non-financial entity that regularly transacts in the physical energy markets for failure to apply to be registered as a swap dealer, if the entity limits its swaps connected with its dealing activities with publicly-owned, government-owned and federal agency utilities to no more than $800 million per year and other requirements set out in the letter are met.

12-19 ; Commission Regulations 4.5 and 1.3(z); Interpretation
The Division of Swap Dealer and Intermediary Oversight issued an interpretative letter that clarifies, in light of the recent vacatur of the position limits rule, the scope of the bona fide hedging exemption from the trading thresholds as applied to the operators of registered investment companies pursuant to Regulation 4.5.

12-20 ; Commission Regulations 1.3(ggg)(4) and 1.3(hhh); No-Action
The Division will not recommend that the Commission take enforcement action against any person for failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4), a swap that (i) references an exempt commodity or agricultural commodity, and (ii) is executed prior to October 20, 2012. The Division also will not recommend that the Commission take enforcement action against any person for failure to include, in its calculation of daily average aggregate uncollateralized outward exposure and daily average aggregate potential outward exposure for purposes of Commission Regulation 1.3(jjj)(4), such exposures arising from any swap that references an exempt commodity or agricultural commodity, from October 12, 2012, through October 20, 2012, inclusive.

12-21 ; Commission Regulation 1.3(ggg)(4); No-Action
Time Limited No-action Relief: Foreign Exchange Swaps and Foreign Exchange Forwards Not to be Considered in Calculating Aggregate Gross Notional Amount for Purposes of Swap Dealer De Minimis Exception or in Calculating Substantial Position in Swaps or Substantial Counterparty Exposure for Purposes of the Major Swap Participant Definition. Time-Limited No-action Relief for persons that meet the definitions of Commodity Pool Operators and Commodity Trading Advisors Solely as a Result of their Foreign Exchange Swap and Foreign Exchange Forward Activities.

12-22 ; Regulations 1.3(ggg)(4) and 1.3(hhh); No-Action
The Division will not recommend that the Commission take enforcement action against certain foreign entities for failure to include a swap executed prior to the earlier of December 31, 2012, or the effective date of a definition of “U.S. person” in a final exemptive order, in its calculations required under the swap dealer and major swap participant definitions, so long as the counterparty to such swap does not fall within certain enumerated categories. The no-action letter also provides similar relief concerning certain swap transactions by certain foreign entities when the counterparty is a foreign branch of a person that falls within one of the enumerated categories and that intends to register as a swap dealer.

12-23 ; Section 4m(1) of the Act; Registration as a Commodity Pool Operator; No-Action
The Division of Swap Dealer and Intermediary Oversight provided no-action relief to the general partner of a commodity pool from registering as a CPO under Section 4m(1) of the Commodity Exchange Act, and allowed an affiliated CPO (“designee”) to serve as the CPO of the pool instead, where, among other things: (1) the general partner and the designee are under common ownership and control; (2) the general partner has delegated all of its management authority to the designee; (3) the general partner does not engage in the solicitation of investors for the pool and does not manage property of the pool; and (4) the general partner and designee executed and submitted to the Division a written acknowledgement of joint and several liability for any violation by either of them of the Act or the Commission’s regulations.

12-24 ; Section 4m(1) of the Act; Registration as a Commodity Pool Operator; No-Action
The Division of Swap Dealer and Intermediary Oversight provided no-action relief to the general partner of a commodity pool from registering as a CPO under Section 4m(1) of the Commodity Exchange Act, and allowed an affiliated CPO (“designee”) to serve as the CPO of the pool instead, where, among other things: (1) the general partner and the designee are under common ownership and control; (2) the general partner has delegated all of its investment management authority to the designee; and (3) the general partner does not engage in the solicitation of investors for the pool and does not manage property of the pool. The relief was subject to the conditions that, among other things: (1) the designee becomes and remains registered as a CPO; and (2) the general partner and the designee execute an agreement by which they each undertake to be jointly and severally liabile for any violation by either of them of the Act or the Commission’s regulations in connection with the operation of the pool.

12-25 ; Section 4m(1) of the Act; Registration as a Commodity Pool Operator; No-Action
The Division of Swap Dealer and Intermediary Oversight provided no-action relief to the general partner of a commodity pool from registering as a CPO under Section 4m(1) of the Commodity Exchange Act, and allowed an affiliated, registered CPO (“designee”) to serve as the CPO of the pool instead, where, among other things: (1) the general partner and the designee are under common ownership and control; (2) the general partner has delegated all of its management authority to the designee; (3) the general partner does not engage in the solicitation of investors for the pool and does not manage property of the pool; and (4) the general partner and designee executed and submitted to the Division a written acknowledgement of joint and several liability for any violation by either of them of the Act or the Commission’s regulations.

12-26 ; Regulation 1.71; No-Action
The Division will not recommend that the Commission take an enforcement action against FCMs or IBs for failure to be fully compliant with Regulations 1.71(a)-(c), (e) and (f) until 60 days beyond the current June 4, 2012 compliance date of the Regulation (August 3, 2012).

12-27 ; Regulation 4.10(d)(1); Interpretation
The Division of Swap Dealer and Intermediary Oversight issued an interpretation that a limited liability company whose members were all family members was not a commodity pool within the meaning and intent of Regulation 4.10(d)(1) and, consequently, that the managing member was not a CPO thereof.

12-28 ; Regulation 22.2(d); Interpretation
Division of Clearing and Risk staff issued an interpretation providing clarification that while regulation 22.2(d) prohibits an FCM from permitting a lien on Cleared Swaps Customer Collateral that it holds, regulation 22.2(d) does not prohibit a Cleared Swaps Customer from granting a lien on his or her own account at the FCM, nor does the regulation prohibit the FCM from taking action to foster the Cleared Swaps Customer’s grant of such a lien.

12-29 ; Commission Regulations 23.202, 23.203; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter that will delay until March 31, 2013, the compliance date for the following SD/MSP recordkeeping provisions: (1) 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); (2) 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); (3) 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 (4) 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.

12-30 ; Part 22; No-Action
The staff of the Commodity Futures Trading Commission’s Division of Clearing and Risk issued a no-action letter to temporarily delay the compliance date for the Commission’s Part 22 rules, which set forth statutory collateral segregation requirements, from November 8, 2012 to November 13, 2012. The Division’s temporary delay of the compliance date for Part 22 regulations is made in light of the damage caused by Hurricane Sandy, and the necessity for Futures Commission Merchants, many of whose operational personnel are focused on business continuity/disaster recovery efforts, to finalize testing for compliance with these regulations.

12-31 ; Part 22; Interpretation
The staff of the Division of Clearing and Risk issued an interpretation regarding Part 22, under which Futures Commission Merchants and Derivatives Clearing Organizations must legally segregate each Cleared Swaps Customer’s collateral, but are permitted to operationally commingle the collateral of their Cleared Swaps Customers. The interpretation, in question and answer format, provides clarification regarding operational issues arising during preparation for the implementation of Part 22.

12-32 ; Part 43, Part 45 and Part 46 of the CFTC's regulations; No-Action
The CFTC's Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight have jointly issued a letter providing swap dealers with time-limited no-action relief from certain requirements of the CFTC’s swap data reporting rules, which are set forth at Part 43, Part 45 and Part 46 of the CFTC’s regulations. The no-action letter establishes a common monthly date by which all newly registered swap dealers must be in compliance with their reporting obligations under the rules, and extends the deadline for reporting historical swap transaction data, as required under Part 46

12-33 ; Amended; Commission Regulation 23.451; No-Action
This letter has been amended from the original version that was issued on November 20, 2012. The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take an enforcement action against any SD or covered associate of any SD for failure to be fully compliant with Regulation 23.451 with respect to “governmental plans” as defined in Section 3 of ERISA, to the extent that such plans are not otherwise covered by SEC and/or MSRB rules. The other provisions of the term “governmental Special Entity,” as defined in Regulation 23.451(a)(3), are unaffected by the letter. The relief provided in the letter is applicable to all SDs and MSPs. The letter also clarifies the scope of the two-year “look-back” period in Regulation 23.451. DSIO believes that the “look-back” period does not include any time period that precedes the date on which an SD is required to register as such.

12-34 ; Commission Regulation 1.25(d)(2); No-Action
By letter dated July 16, 2012, X requested that the Division confirm that it will not recommend enforcement action to the Commission concerning X’s proposed repurchase and reverse repurchase transactions (collectively, “repos”) under Commission Regulation 1.25 (investment of customer funds). X intends to enter into repos, using customer funds, subject to Regulation 1.25(d). The repos will subsequently be submitted for clearing by Y, an SEC-registered securities clearing agency. By clearing the repos, Y will become X’s counterparty. Although Y is not a “permitted counterparty” under Regulation 1.25(d)(2), the Division believes that permitting X to clear repos with Y is consistent with the risk-mitigation purpose of the regulation’s counterparty limitations.

12-35 ; Section 2(h) of the CEA; No-Action
Time-Limited No-Action Relief from the Clearing Requirement for Swaps Between Affiliated Counterparties.

12-36 ; Section 2(h) of the CEA; No-Action
Time-Limited No-Action Relief from the Clearing Requirement for Swaps Entered Into By Cooperatives.

12-37 ; Parts 3 and 4; No-Action
The Division of Swap Dealer and Intermediary Oversight issued a letter to family offices stating that the Division would not recommend that the Commission take enforcement action against operators of family offices for failure to register as commodity pool operators subject to certain criteria, including the filing of a notice with the Division.

12-38 ; Parts 3 and 4; No-Action
The Division of Swap Dealer and Intermediary Oversight issued a letter providing that the Division will not recommend that the Commission take enforcement action against the commodity pool operators of funds of funds for failure to register as such until the later of June 30, 2013, or six months from the date that the Division issues revised guidance on the application of the calculation of the deminimis thresholds in the context of Commission regulations 4.5 and 4.13(a)(3), provided that the commodity pool operators meet certain criteria specified in the letter.

12-39 ; Part 43 and Part 45: §§ 43.3(a); 43.4(a); Appendix A to Part 43; 45.3(b)(1); 45.3(b)(3); 45.3(c)(1)(i); 45.3(c)(1)(iii); 45.3(c)(2)(i); 45.3(c)(2)(iii); 45.3(d)(1); 45.3(d)(3); 45.4(c); and Appendix 1; No-Action
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) announced the issuance of a time-limited no-action letter granting relief, for bespoke or complex swaps, from certain reporting obligations under Part 43 and Part 45 of the Commission’s regulations. For bespoke or complex swaps, the no-action letter provides that DMO will not recommend an enforcement action against (1) a reporting party for failure to report certain data fields listed in Appendix A to Part 43 or (2) a reporting counterparty for failure to report certain data fields listed in Appendix 1 to Part 45. In addition, for bespoke or complex swaps that are uncleared inter-affiliate swaps, the letter provides no-action relief from certain confirmation data reporting obligations under Part 45. The relief will expire on the earlier of such time that the relevant data elements can be electronically represented in the FpML schema or June 30, 2013.

12-40 ; Parts 3 and 4; No-Action
The Division of Swap Dealer and Intermediary Oversight issued a letter providing that the Division will not recommend that the Commission take enforcement action against the commodity pool operators of business development companies for failure to register as such, provided that the commodity pool operators meet certain criteria specified in the letter, including the compliance with a de minimis trading threshold.

12-41 ; Part 43, Part 45 and Part 46 of the CFTC's regulations; No-Action
In order to account for certain disruptions to the testing of swap data reporting systems caused by Hurricane Sandy, the CFTC's Division of Market Oversight has issued a letter providing swap dealers with time-limited no-action relief from swap data reporting obligations with respect to equity swaps, foreign exchange swaps and other commodity swaps. For these asset classes, the letter provides swap dealers with reporting relief (i) under Part 43 and Part 45 of the CFTC’s regulations, until February 28, 2013, and (ii) under Part 46 of the CFTC’s regulations, until March 30, 2013.

12-42 ; Commission Regulation 23.431; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take an enforcement action against a swap dealer or major swap participant for failure to disclose the pre-trade mid-market mark, as required by Regulation 23.431(a)(3), to a counterparty in a Covered Forex Transaction, provided that: (1) real-time tradeable bid and offer prices for the Covered Forex Transaction are available electronically, in the marketplace, to the counterparty; and (2) the counterparty to the Covered Forex Transaction agrees in advance, in writing, that the swap dealer or major swap participant need not disclose a pre-trade mid-market mark. The relief provided in the letter is applicable to all SDs and MSPs.

12-43 ; Regulation 23.22(b) – Prohibition against associating with a person subject to a statutory disqualification; No-Action
The Division of Swap Dealer and Intermediary Oversight (“Division”) provided limited “no-action” relief to swap dealers and major swap participants (collectively, “Swap Entities”) from compliance with the prohibition in Regulation 23.22(b) against permitting a person who is subject to a statutory disqualification to effect or be involved in effecting swaps on behalf of the Swap Entity. Specifically, the Division provided this relief with respect to: (1) non-domestic associated persons (“APs”) of Swap Entities who deal only with non-domestic swap counterparties; and (2) persons employed in a clerical or ministerial capacity (“Employees”) by Swap Entities. As the Division explains in the letter, the purpose of this relief is to align the treatment of these APs and Employees with the treatment of all other APs and Employees under the Commodity Exchange Act and the Commission’s Regulations.

12-44 ; Parts 3 and 4 of the Commission’s Regulations; No-Action
The Division of Swap Dealer and Intermediary Oversight issued a letter providing that it will not recommend that the Commission take enforcement action against the operators of mortgage real estate investment trusts for failure to register as commodity pool operators provided that the mortgage real estate investment trust satisfies certain criteria including compliance with a de minimis threshold.

12-45 ; Parts 3 and 4 of the Commission’s Regulations; Section 1a(10) of the CEA; No-Action; Interpretation
The Division of Swap Dealer and Intermediary Oversight issued a letter providing additional guidance to securitization vehicles regarding whether they may be excluded from the definition of commodity pool. The Division also stated that it will not recommend that the Commission take enforcement action against the commodity pool operators of securitization vehicles that have not and will not issue new securities on or after October 12, 2012. Finally, the Division stated that, for securitization vehicles that could not claim relief either under this letter or the 12-14 Letter, it would not recommend enforcement action against operators of securitization vehicles for failure to register as a commodity pool operator until March 31, 2013.

12-46 ; Part 20, Part 45 and Part 46; No-Action
The Division of Market Oversight issued time-limited, no-action relief for Part 20 Reporting Entities regarding identifying information and for Part 45 and Part 46 Reporting Counterparties regarding legal entity identifiers and other identifying information.

12-47 ; Regulation 3.3; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter providing certain futures commission merchants (FCMs) with limited relief surrounding the requirement that chief compliance officers of such FCMs prepare and submit an Annual Report, pursuant to Commission Regulation 3.3. The relief provided in the no-action letter is applicable to all FCMs that: (1) were registered with the Commission as of June 4, 2012; and (2) are currently regulated by a U.S. prudential regulator or registered with the U.S. Securities and Exchange Commission (Covered Firms). The no-action letter enumerates the subjects that must be addressed in the Annual Report of a Covered Firm for the fiscal year that ends on or before March 31, 2013. The letter also provides relief concerning the certification that a chief compliance officer must execute with respect to that Annual Report, as well as the deadline for furnishing a copy of that Annual Report to the CFTC.

12-48 ; CEA Sections 2(d), 2(e), 2(g), 2(h), 5d;; No-Action
DMO no-action letter preserving the regulatory status quo established with respect to certain transactions by the Commission's Second Amendment to July 14, 2011 Order for Swap Regulation.

12-49 ; Commission Regulation 3.10(a)(2); No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter providing relief from the fingerprinting requirement under Commission Regulation 3.10(a)(2) for a principal of a Commission registrant where the principal has not resided in the United States since reaching 18 years of age (Non-U.S. Principal). The no-action letter provides that DSIO will not recommend an enforcement action against a registrant based solely on the registrant’s failure to submit with its application for registration fingerprints on a fingerprint card provided that the registrant: (1) lists each Non-U.S. Principal on its application; (2) submits a Form 8-R for each Non-U.S. Principal with a “certification” that a reasonable criminal background check has been performed and the background check did not reveal any disqualification under Sections 8a(2) or 8a(3) of the Commodity Exchange Act; and (3) notifies the NFA within 30 days after the filing of a Form 8-R that it has not submitted a fingerprint card for each Non-U.S. Principal. The no action relief is also subject to compliance with the condition that the registrant keeps a copy of the certification, together with all supporting documents, pursuant to Commission Regulation 1.31.

12-50 ; Section 45.3(e)(ii)(A) of the Commission’s regulations; No-Action
The Division of Market Oversight issued time-limited, no-action relief from the post-allocation swap timing requirement of section 45.3(e)(ii)(A) of the Commission’s regulations.

12-51 ; Part 20 of the CFTC’s regulations; No-Action
The CFTC’s Division of Market Oversight has issued a letter addressing the timeline within which non-clearing member swap dealers must come into compliance with the large swap trader reporting requirements of Part 20 of the CFTC’s regulations. The letter extends, until March 1, 2013, no-action relief from Part 20 reporting requirements that was granted to non-clearing member swap dealers in CFTC Letter No. 12-04, which was issued by the Division of Market Oversight on July 17, 2012. The letter also extends, until September 1, 2013, the additional period of reporting relief that was granted by the Division of Market Oversight in CFTC Letter No. 12-04 to non-clearing member swap dealers that satisfy the conditions of Section 20.10(e) of the CFTC’s regulations. (DMO)

12-52 ; Commission Regulation 3.3; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter providing certain swap dealers (SDs) with relief surrounding the requirement that chief compliance officers of such SDs prepare and submit an Annual Report, pursuant to Commission Regulation 3.3, for the fiscal year ending on Dec. 31, 2012. The relief provided in the no-action letter is applicable to all SDs that: (1) are required to register by Dec. 31, 2012; (2) are currently regulated by a U.S. prudential regulator or are registrants of the Securities and Exchange Commission (“SEC”); and (3) have a fiscal year-end of Dec. 31, 2012.

12-53 ; Parts 43 and 45; No-Action
Time-Limited No-Action Relief from (i) Parts 43 and 45 Reporting for Prime Brokerage Transactions, and (ii) Reporting of Unique Swap Identifiers in Related Trades under Part 45 by Prime Brokers

12-54 ; Section 4m(1) – CTA registration requirement; No-Action
The Division of Swap Dealer and Intermediary Oversight took a registration no-action position with respect to a CTA that was a subsidiary of a registered CPO, in connection with the CTA advising pools operated by the CPO. The CPO owned all voting interest in the CTA, and all of the CTA’s principals (besides the CPO) were principals of the CPO (or reported to a principal of the CPO). Neither the CTA nor any of its principals was subject to a statutory disqualification, and the CPO and CTA agreed to provide written acknowledgment of joint and several liability for any violation of the CEA or the Commission’s Regulations by either of them in connection with providing commodity interest trading advice to pools operated by the CPO and advised by the CTA.

12-55 ; Sections 2(a)(13)(G) and 21(b) of the Commodity Exchange Act, and § 45.4(b)(2)(ii) of the CFTC regulations; No-Action
The no-action letter provides time-limited relief to Swap Dealers (“SDs”) and Major Swap Participants (“MSPs”) from the obligation to report valuation data for cleared swaps as required by § 45.4(b)(2)(ii) of the Commission’s regulation. The no-action letter provides that the Division of Market Oversight will not recommend that the Commission take enforcement action against a SD or MSP for failure of such SD or MSP to comply with the requirements of regulation 45.4(b)(2)(ii) to report valuation data. The no-action relief applies to: (i) all SDs and MSPs that are reporting counterparties under regulation 45.4(b)(2)(ii), and (ii) all cleared swaps for which the SD or MSP has the obligation to report valuation data under regulation 45.4(b)(2)(ii). The no action relief expires on June 30, 2013.

12-56 ; Sections 5b(a) and 2(h)(1)(A) of the Commodity Exchange Act and Parts 39 and 50 of Commission Regulations; No-Action
The Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (DCR) today issued a letter stating that DCR will not recommend that the Commission take enforcement action against Japan Securities Clearing Corporation (JSCC) for failing to register as a derivatives clearing organization (DCO) under section 5b(a) of the Commodity Exchange Act (CEA). The letter also states that DCR will not recommend enforcement action against JSCC’s qualified clearing participants, and a parent or affiliate of a JSCC qualified clearing participant, for failing to clear yen-denominated interest rate swaps subject to the Commission’s clearing requirement under section 2(h)(1)(A) of the CEA through a registered DCO.

12-57 ; Commission Regulation 1.3(ggg); No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take an enforcement action against any person for failure to include a swap executed on Natural Gas Exchange prior to the earlier of March 31, 2013, or the granting or denial of NGX’s application for registration as an FBOT, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4).

12-58 ; Commission Regulation 23.431; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take an enforcement action against a swap dealer or major swap participant for failure to disclose the pre-trade mid-market mark, as required by Regulation 23.431(a)(3), to a counterparty in a Covered Derivative Transaction prior to the issuance of final Commission Regulations governing the registration of SEFs, subject to any compliance implementation period contained therein, provided that: (1) real-time tradeable bid and offer prices for the Covered Derivative Transaction are available electronically, in the marketplace, to the counterparty; and (2) the counterparty to the Covered Derivative Transaction agrees in advance, in writing, that the swap dealer or major swap participant need not disclose a pre-trade mid-market mark. The letter also states that DSIO will not recommend that the Commission take an enforcement action against a swap dealer or major swap participant for failure to disclose the pre-trade mid-market mark, as required by Regulation 23.431(a)(3), to a counterparty in a Covered Derivative Transaction subsequent to the issuance of final Commission Regulations governing the registration of SEFs, subject to any compliance implementation period contained therein, provided that: (1) real-time executable bid and offer prices for the Covered Derivative Transaction are available on a DCM or SEF; and (2) the counterparty to the Covered Derivative Transaction agrees in advance, in writing, that the swap dealer or major swap participant need not disclose a pre-trade mid-market mark. The relief provided in the letter is applicable to all SDs and MSPs.

12-59 ; Sections 2(a)(13)(G) and 21(b) of the Commodity Exchange Act, and part 45 of the CFTC regulations; No-Action
The no-action letter provides time-limited relief to reporting counterparties that are Swap Dealers (“SDs”) and Major Swap Participants (“MSPs”) from the obligation to report swap data under part 45 of the Commission’s regulations for cleared credit default swaps (“CDS”) that are entered into pursuant to a derivatives clearing organization’s (“DCO”) rules related to its price submission process for determining end-of-day settlement prices for cleared CDS (“CDS Clearing-Related Swaps”). The no-action letter provides that the Division will not recommend that the Commission take enforcement action against a reporting counterparty, an SD or MSP, for failure of such SD or MSP to comply with its obligations to report swap data required under part 45, for CDS Clearing-Related Swaps. The no-action relief is subject to, among others, the following conditions: (i) the reporting counterparty, as defined in part 45, must be a clearing member of a registered DCO that is eligible to clear CDS indices and must participate in that DCO’s CDS Settlement Price Process, and (ii) the no-action relief will apply only to CDS Clearing-Related Swaps arising from, or entered into pursuant to, a DCO’s Settlement Price Process, as required by the DCO’s rules and procedures. The no-action relief expires on June 30, 2013.

12-60 ; Commission Regulation 1.3(ggg); No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take an enforcement action against any entity for failure to include, prior to July 1, 2013, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4), a swap that is submitted to a registered DCO for clearing, provided that: (1) the entity does not have a registered swap dealer affiliate; (2) the entity entered into the swap using proprietary funds for its own account; and (3) the entity complies with the requirements set forth in Commission Regulations 1.3(ggg)(6)(iv)(D)-(H). To rely upon the relief, an entity that is eligible for the relief must file a claim with DSIO.

12-61 ; Commission Regulation 1.3(ggg)(4); No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take enforcement action against any U.S. bank that is wholly owned by a foreign entity for failure to consider the swap dealing activities of its foreign affiliates, or the U.S. branches of such affiliates, with respect to swap positions executed from and after October 12, 2012, when determining whether such U.S. bank satisfies the de minimis exception to the swap dealer definition and registration requirements, so long as the U.S. bank meets certain conditions specified in the letter. To rely upon the relief, an entity that is eligible for the relief must file a claim with DSIO.

12-62 ; Commission Regulation 1.3(ggg); No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take an enforcement action against any person for failure to include in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4), terminations of swaps (in whole or in part) or swaps entered into as replacement swaps as part of a multilateral portfolio compression exercise (as defined in Commission Regulation 23.500).

12-63 ; Sec. 5b(a) and Sec. 4d(f)(1) of the CEA; No-Action
The Division of Clearing and Risk issued a letter stating that it will not recommend that the Commission take enforcement action against Singapore Exchange Derivatives Clearing Limited (SGX-DC) for failing to register as a derivatives clearing organization (DCO) under section 5b(a) of the Commodity Exchange Act (CEA); and will not recommend enforcement action against SGX-DC’s clearing members for failing to register as futures commission merchants (FCMs) under section 4d(f)(1) of the CEA, in relation to the clearing and carrying of existing or new positions in certain commodity swaps for U.S. customers. This relief will be effective until the earlier of (1) December 31, 2013, or (2) the date upon which SGX-DC registers as a DCO, such date by which the positions of U.S. customers must be held only by clearing members that are registered FCMs.

12-64 ; Mixed swaps, Section 1a(47)(D) of the Commodity Exchange Act; No-Action
Based on industry representations regarding the difficulty of complying with Commission timetables for, e.g., registration, external business conduct, recordkeeping and reporting, the no-action letter permits affected persons additional time (through June 30, 2013) to progress to compliance with any provision of the Dodd-Frank Act or the rules promulgated thereunder (other than anti-fraud or anti-manipulation) applicable to compo equity total return swaps.

12-65 ; Part 45 and Part 46; No-Action
Time-Limited No-Action Relief from the Reporting of Certain Non-Reporting Counterparty Information Pursuant to Parts 45 and 46

12-66 ; Parts 43, 45 and 46; No-Action
The no-action letter provides that DMO will not recommend an enforcement action against a swap dealer with respect to the following: a) a delay in reporting swaps executed by branches in emerging market jurisdictions as defined therein ; b) a delay in reporting aggregate pricing data for exotic/multi-leg swap transactions; c) a delay in linking the report made for post-trade allocations, compressions, or novations to the unique swap identifier of the previously reported initial swap; and d) withholding or incorrect reporting of certain life cycle events. To avail themselves of the relief, a swap dealer must meet specific criteria and comply with certain conditions set forth in the no-action letter. The Division will extend this relief until the earlier of: (1) resolution of the technological issues preventing timely compliance; or (2) 12:01 a.m. eastern daylight time on April 30, 2013.

12-67 ; Parts 3 and 4 of the Commission’s Regulations; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a letter providing that the Division will not recommend that the Commission take enforcement action against the commodity pool operators of investment pools that invest in securitization vehicles that comply with the terms of the no-action relief set forth in the 12-45 letter.

12-68 ; Part 4 of the Commission’s Regulations; No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a letter providing that the Division will not recommend that the Commission take enforcement action against certain commodity pool operators (“CPOs”), commodity trading advisors (“CTAs”) or any principal or associated person (“AP”) thereof who will be required to register pursuant to the recent amendment to Commission Regulation 4.5 or the rescission of Commission Regulation 4.13(a)(4).

12-69 ; Section 4k of the Commodity Exchange Act and CFTC Regulation 3.12; No-Action
The Division of Swap Dealer and Intermediary Oversight granted an extension of the temporary no-action registration relief previously granted under CFTC Letter No. 12-15 (October 11, 2012) for associated persons ("APs") of a futures commission merchant, introducing broker, commodity pool operator or commodity trading advisor who are required to register as APs solely by virtue of their involvement with swaps or as a result of the transition of certain contracts by the Intercontinental Exchange, Inc. and the New York Mercantile Exchange to clearing as commodity futures and options transactions. The temporary registration relief is subject to conditions, and does not extend any other relief previously granted under CFTC Letter No. 12-15.

12-70 ; Sections 4d and 4m of the Commodity Exchange Act; No-Action; Exemption
The Division of Swap Dealer and Intermediary Oversight granted no-action relief from registration as an IB or CTA to certain affiliates of swap dealers and swap counterparties and their employees where the affiliates' employees engage in certain activity in support of and on behalf of the swap dealer or swap counterparty. The relief is subject to a number of conditions, including that the affiliate and the swap dealer or swap counterparty undertake to be jointly and severally liable for violations of the CEA or the Commission's regulations and that the affiliate and employees are not subject to a statutory disqualification.

12-71 ; Commission Regulation 1.3(ggg)(4); No-Action
The Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter stating that DSIO will not recommend that the Commission take enforcement action against any U.S. bank that is wholly owned by a foreign entity for failure to consider the swap dealing activities of its foreign affiliates, or the U.S. branches of such affiliates, with respect to swap positions executed from and after October 12, 2012, when determining whether such U.S. bank satisfies the de minimis exception to the swap dealer definition and registration requirements, so long as the U.S. bank meets certain conditions specified in the letter.

12-72 ; Section 4m(1) – CPO and CTA registration requirements; No-Action
The Division of Swap Dealer and Intermediary Oversight took a CPO and CTA registration no-action position with respect to a registered investment adviser that acted as the sponsor and investment manager for a pension plan group trust. Each of the plans participating in the group trust was within the categories of plans excluded under Regulation 4.5 from the “pool” definition.

12-73 ; Section 5b(c)(2)(H) of the CEA, Regulation 39.17(a); No-Action
The no-action letter provides relief to a derivatives clearing organization (DCO) that is dually registered as a securities clearing agency for failure to enforce certain of its clearing member requirements. Under this relief, the DCO may waive the applicability of certain of its bylaws and rules to facilitate a transaction involving the transfer, assignment and assumption of the securities correspondent clearing business of one clearing member to another.

12-74 ; Section 5b(c)(2)(H) of the CEA, Regulation 39.17(a); No-Action
The no-action letter provides an extension of previously-granted no-action relief to a derivatives clearing organization (DCO) that is dually registered as a securities clearing agency for failure to enforce certain of its clearing member requirements. Under this relief, the DCO may waive the applicability of certain of its bylaws and rules to facilitate a transaction involving the transfer, assignment and assumption of the securities correspondent clearing business of one clearing member to another.