The no-action relief issued to Swap Dealers (SDs) and Major Swap Participants (MSPs), originally set to expire on June 30th, has been extended a year. The relief is regarding reporting regulations that were originally put into place on December 17th, 2012.
The Division of Market Oversight (DMO) Acting Chair Richard Shilts published a letter on June 26th, 2013 regarding the no-action time-limited relief they originally issued on December 17th, 2012. In the letter, they recommend no-action against any Swap Dealer or Major Swap Participant for failure in complying with regulation 45.4(b)(2)(ii)
The relief applies to SDs and MSPs that must report counterparties under the regulation, and all cleared swaps that have required counterparty reporting by the SDs and MSPs.
The reasoning behind the extension on this relief dates back to a December 13th, 2012 letter from the International Swaps and Derivatives Association, Inc., (ISDA), which was the original request for no-action relief on this matter. One of the specific concerns cited in the June 26th letter is the connectivity required for valuation data to be reported to all Swap Data Repositories (SDRs).
The new deadline for compliance with this regulation is June 30th, 2014.