CFTC Staff Extends Temporary No-Action Letter Regarding Certain Financial Reporting Requirements for Bank Swap Dealers

The U.S. Commodity Futures Trading Commission (CFTC) has published a press release to announce that its Market Participants Division (MPD) has extended previously granted no-action relief to bank swap dealers (SDs) with respect to certain financial reporting requirements and filing deadlines. The extended relief measures are a consequence of the regulatory reporting requirements of the CFTC that took effect on October 6, 2021, but for which the CFTC had previously granted no-action relief up to October 6, 2023 to bank SDs. They are meant to ease burdens on those SDs that file similar reports with U.S. prudential regulators or their corresponding home country regulators.
Specifically, the relief contains the following measures:
(1) Bank swap dealers that file call reports (Report of Condition and Income) with their prudential U.S. regulators may file the Balance Sheet and Regulatory Capital from the Call Report in lieu of equivalent forms of the CFTC;
(2) Covered non-U.S. bank swap dealers may file a statement of financial condition and a statement of regulatory capital in lieu of comparable CFTC forms, if such forms are filed with the home country regulator and the information contained is similar to the one contained in the Balance Sheet and Regulatory Capital from the Call Report. The SD may also use the generally accepted accounting standards of that home country as long as the reports are in English and all balances are converted to U.S. Dollars;
(3) Covered non-U.S. bank swap dealers that are dually-registered with the SEC as security based swap dealer files a FOCUS Report Part IIC, or other SEC approved financial reports and schedules, with the Commission in lieu of its reporting obligation under Regulation 23.105 of the Commodity Exchange Act provided certain conditions are met.
Please note: the relief also specifies the frequency of reporting and is time limited as indicated in the above Event timeline.