CFTC Staff Issues No-Action Relief for UBS and Credit Suisse Swaps Transfer

The Commodity Futures Trading Commission (CFTC) has issued a staff no-action letter providing regulatory relief regarding swap clearing and uncleared swap margin requirements following the merger of UBS Group AG and Credit Suisse Group AG. The letter was issued on April 15, 2025, jointly by the CFTC’s Market Participants Division (MPD) and the Division of Clearing and Risk (DCR). The relief relates to a court-supervised transfer, conducted in accordance with United Kingdom law, of certain swap portfolios from Credit Suisse International to UBS AG London Branch. According to the CFTC, the legacy swaps in question were entered into before the relevant compliance dates for the agency's clearing and uncleared swap margin mandates took effect. Because of their timing, the contracts were not subject to those requirements prior to the court-supervised transfer. Subject to specified conditions, the no-action position provides that MPD will not recommend enforcement action against certain swap dealer counterparties of UBS AG London Branch for failing to comply with uncleared swap margin rules regarding the transferred swaps. In addition, DCR will not recommend enforcement action against UBS AG or certain counterparties for failing to meet swap clearing requirements for the transferred transactions. The CFTC confirmed that the staff no-action letter was issued in response to a request submitted by UBS AG.