Section 2(h)(7)(A) of the CEA and CFTC Regulation 50.50 provide for an exception from clearing for swaps entered by certain End Users (the “End-User Exception”). The full requirements are listed in CFTC Regulation 50.50(a) through 50.50(d) and can be found at:http://www.cftc.gov/LawRegulation/FederalRegister/FinalRules/2012-17291. Reporting of the utilization of such end user exceptions is required from September 9, 2013 onwards.
Pursuant to CFTC Regulation 50.50(b), evidence of eligibility for end user clearing exceptions may be submitted by electing counterparties either on a swap by swap or annual basis. Consistent with this requirement, CME SDR will provide the means to submit evidence of this eligibility via both methods.
The eligibility forms found per the links below may be uploaded to CME SDR annually (or as otherwise required to reflect material changes) or in conjunction with each submitted swap. Please note that all parties that need to submit these eligibility forms to CME must first be registered with CME SDR.To register with CME SDR, parties should send an email to SDRRegistration@cmegroup.com.
Once the required eligibility form has been submitted, it will be part of the swap records in CME SDR for those transactions for which the electing counterparty has indicated usage of the exception or exemption from clearing. The appropriate eligibility forms, once submitted, will be viewable via the CME SDR web user interface. The links to the eligibility forms, and the instructions for uploading these forms to CME SDR can be found at the bottom of this page.
An indication that a clearing exception or exemption is being utilized for a given swap must be included as part of that swap’s submission to CME SDR by populating one or both of the fields below with one or more of the listed exceptions/exemptions
'RptPartyClearingException'
'NonRptPartyClearingException'
'ENDU' = End-user exception, § 50.50
'AFFL' = Inter-affiliate exemption, § 50.52
'SMBK' = Small bank exemption, § 50.50(d)
'COOP' = Cooperative exemption, § 50.51
'NOAL' = No-action Letter
'OTHR' = Other exceptions or exemptions, not including no-action letter relief
The Technical Specifications providing more details as to the format and applicable validations for the listed fields can be found via the following link.
Please direct any questions associated with this process to RepositorySupport@cmegroup.com
End-User Exception Reporting Form
Inter-Affiliate Exemption Reporting Form
Submitting Clearing Exception Eligibility Forms