The Commodity Futures Trading Commission’s Division of Market Oversight and the Division of Clearing and Risk have issued no-action letters regarding swap data reporting and recordkeeping requirements. The move comes after requests from several registered entities.
According to the CFTC, the divisions will not recommend enforcement action against certain registered entities or their participants for failing to comply with some swap-related recordkeeping requirements or for failing to report binary option transaction data to swap data repositories. This relief applies only in specific circumstances outlined in the no-action letters. The CFTC noted that these actions are similar to previous no-action letters granted to other designated contract markets and derivatives clearing organizations.
"The divisions will not recommend the CFTC initiate an enforcement action against certain registered entities or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions executed on or subject to the rules of the registered entities, subject to the terms of the no-action letters. The no-action letters apply only in narrow circumstances and are comparable to no-action letters issued for other similarly situated designated contract markets and derivatives clearing organizations."
