The CFTC’s Division of Market Oversight has issued a letter extending relief from two sections of the “Large Swaps Trader Reporting for Physical Commodities” rule. The relief is temporary and conditional, and parties are welcome to become fully compliant with reporting requirements before relief expires.
The Division is offering relief from sections 20.3 and 20.4 of the large trader reporting rule. 20.3 requires daily reports from clearing organizations, and 20.4 requires daily reports from clearing members and swap dealers. Based on discussions with market participants and industry organizations, the Division believes that it is necessary to extend temporary relief from these rules in order to continue addressing compliance and implementation issues.
Therefore, clearing organizations and clearing members are exempted from 20.3 and 20.4 until November 21, 2011 for cleared swaps, and January 20, 2012 for uncleared swaps. However, this relief is only offered on the condition that clearing organizations and clearing members provide open interest data for positions at the end of each month, beginning September 30, 2011. This data must be submitted no later than February 20, 2012.
All other provisions of the large swaps trader reporting requirement come into effect on September 20, 2011, including the special call provision of 20.5(b) and the books and record requirement in 20.6.