CFTC Staff Grants No-Action Relief for Event Contract Reporting and Recordkeeping

The Commodity Futures Trading Commission (CFTC) announced that its staff has adopted a no-action position regarding specific swap data reporting and recordkeeping regulations related to event contracts. The relief was issued jointly by the CFTC’s Division of Market Oversight and the Division of Clearing and Risk in response to requests submitted by several registered entities. Under the terms outlined in the no-action letters, staff from both divisions will not recommend that the CFTC take enforcement action against certain registered entities or their market participants for failing to meet specific swap-related recordkeeping requirements. The relief also covers the non-reporting of binary option transaction data to swap data repositories for contracts executed on or subject to the rules of these registered entities. The CFTC emphasized that the no-action position applies exclusively in narrow circumstances and aligns with previous letters issued for other similarly situated designated contract markets and derivatives clearing organizations.