CFTC Issues No-Action Relief from Certain Data Reporting for Swaps Related to Upcoming DCO Auctions to Assist Transition Away from LIBOR | Practical Law

CFTC Issues No-Action Relief from Certain Data Reporting for Swaps Related to Upcoming DCO Auctions to Assist Transition Away from LIBOR | Practical Law

CFTC Issues No-Action Relief from Certain Data Reporting for Swaps Related to Upcoming DCO Auctions to Assist Transition Away from LIBOR

CFTC Issues No-Action Relief from Certain Data Reporting for Swaps Related to Upcoming DCO Auctions to Assist Transition Away from LIBOR

by Practical Law Finance
Published on 15 Oct 2020 • USA (National/Federal)
On October 13, 2020, the CFTC announced it has issued no-action relief to specific derivatives clearing organizations (DCOs) and market participants participating in upcoming DCO "big bang" auctions that will help transition certain cleared swaps from discounting using the Effective Federal Funds Rate (EFFR) to the Secured Overnight Financing Rate (SOFR). The relief is designed to assist the market-wide transition away from LIBOR to alternative benchmarks.
The relief allows the reporting of swap transaction and pricing data for these EFFR-SOFR basis swaps to be delayed until November 19, 2020, and was provided in the following letters:
  • CFTC No-Action Letter No. 20-32, which provides relief for certain swaps executed as part of the LCH Limited discounting transition auction on October 16, 2020.
  • CFTC No-Action Letter No. 20-33, which provides relief for certain swaps executed as part of the CME Inc. discounting transition auction on October 19, 2020.