CFTC Staff Issues No-Action Letter Regarding Certain Block and Cap Amendments

The U.S. Commodity Futures Trading Commission, CFTC, has published a press statement to inform that its Division of Data (DOD) has issued a new no-action relief letter (Staff Letter 23-15) in connection with certain reporting requirements of swap dealers and swap counterparties that would otherwise have to be met by December 4, 2023.
To recap, in 2020, the CFTC created a new rule to require swap participants to report additional data to swap data repositories „in the form and manner provided in a technical specification“ of the Commission. These reporting requirements also included block trades and large notional off-facility swaps, the new cap sizes of which were determined earlier this year (EventID 20743) to be effective December 4, 2023. In the meantime, the Commission has created new rules to require the reporting of the Unique Product Identifier (UPI) and swap classifications which needs to be complied with by January 29, 2024.
In view of the significant changes for swap data repositories and swap reporting counterparties, the Division of Data has now recommended in its letter that the CFTC does not take any enforcement actions against swap participants and repositories for not fulfilling the reporting requirements due by December 4, 2023, as long as they comply with the requirements by July 1, 2024 and adhere to the reporting obligations that were in effect on January 1, 2021.