CFTC Statement on Swaps Rules Implicated in Recent Bank Failures

On March 16, 2023, the U.S. Commodity Futures Trading Commission (CFTC) published a press statement as regards the application of swap rules and requirements concerning swaps „impacted by the failures of Silicon Valley Bank and Signature Bank“. In its statement, the CFTC notes that it will refrain from enforcing any swap (trading) requirements (e.g. margin or clearing requirements) on swaps that have been ordered to be transferred to the „newly established bridge banks, Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A“. Additionally, counterparties that may now face issues as regards their reporting obligations relating to such swaps shall „use best efforts“ to meet their reporting requirements. The CFTC „will consider further action related to swaps reporting obligations as appropriate“.