Derivatives

CFTC extends CDS reporting relief

The Commodities and Futures Trading Commission (CFTC) has extended its relief on obligations to report swap data of credit default swaps (CDS) until the end of the year.

A letter published by the CFTC has extended the relief for swap dealers (SDs) and major swap participants (MSPs) from its original 30 June expiry date.

The CFTC will not take enforcement action against and SD or MSP acting as a reporting counterparty who fails to comply with its obligations to report CDS data required under part 45 of its regulations.

Part 45 sets out numerous reporting requirements in relation to CDS, including requiring reports for primary economic terms (PET), which a derivatives clearing organisation (DCO) must report this information as soon as possible, with a one hour deadline in year one and a thirty minute deadline after that.

The relief is subject to certain conditions. Firstly, the clearing counterparty must be a clearing member of a DCO eligible to clear CDS indicies and must participate in that DCO's CDS settlement price process.

Secondly, the relief will only apply to CDS clearing-related swaps arising from, or entered into pursuant to, a DCOs settlement price process.

The latest relief on these obligations will expire on 31 December 2013.

John Bakie john.bakie@information-partners.com