The Commodity Futures Trading Commission’s Market Participants Division issued a staff interpretation on financial reporting for nonbank swap dealers regulated by Japan’s Financial Services Agency that rely on the CFTC’s Japanese substituted compliance framework. The interpretation clarifies how these firms can meet the requirement to submit their home regulator Annual Business Report to the CFTC and the National Futures Association. Under the July 18, 2024 comparability determination and related comparability order, Japanese nonbank swap dealers received substituted compliance for certain CFTC capital and financial reporting requirements, subject to conditions including a requirement (condition 9) to file a copy of the Annual Business Report. Staff clarified that condition 9 may be satisfied by filing certain enumerated schedules of the Annual Business Report (the In Scope Schedules), while still complying with condition 9’s translation, U.S. dollar conversion, and deadline requirements. The interpretation followed a request from the Securities Industry and Financial Markets Association on behalf of its Japanese nonbank swap dealer members.
Commodity Futures Trading Commission 2025-03-20
Commodity Futures Trading Commission clarifies Annual Business Report filing scope for Japanese nonbank swap dealers under substituted compliance
The CFTC's Market Participants Division clarified financial reporting for Japanese nonbank swap dealers under the substituted compliance framework. Condition 9 of the compliance order can be met by filing certain schedules of the Annual Business Report, adhering to translation, U.S. dollar conversion, and deadline requirements. This follows a request from the Securities Industry and Financial Markets Association.