The Commodity Futures Trading Commission (CFTC) has provided relief to market participants relating to the transition from swaps referencing LIBOR and other interbank offered rates. The CFTC has issued three no-action letters providing the additional relief for swap transactions transitioning from Libor to alterative benchmarks, which applies to swap dealers and other market participants.
The news comes as LIBOR is set to be retired at the end of 2021.
The relief covers requirements applicable to swap dealers, the trade execution requirement and mandatory clearing.
Letter 19-26 provides relief from certain requirements under the registration exemption, uncleared swap margin rules and business conduct requirements. Letter 19-27 provides time-limited relief from the trade execution requirement, while letter 19-28 provides a similar relief from the swap clearing requirement.
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