The CFTC has extended the no-action relief already granted to non-US SDs in respect of Transaction-Level Requirements under the CEA. The latest relief expires 31 December 2014, a three and a half month extension from the previous expiry . Note that if the covered transaction is a trade between two non-US SDs, portfolio compression and swap trading relationship requirements will not be subject to relief.
In November 2013, the CFTC issued an advisory stating that if a swap between two non-US SDs is arranged, negotiated or executed by persons located in the US. eg. a swap between two European banks traded via a New York broker, then Transaction-Level Requirements would apply. Letter 13-71 granted time-limited relief, which was itself extended by Letter 14-01, which has now been extended by Letter 14-74. The agency’s whole approach to cross-border situations is in implicit flux, it is likely that the original advisory will be subject to major revision or rescindment before the year-end expiry of this letter.