The Commodity Futures Trading Commission (CFTC) has announced that in response to the COVID-19 (coronavirus) pandemic, the Division of Swap Dealer and Intermediary Oversight (DSIO) has issued two additional no-action letters providing temporary, targeted relief to a large U.S. bank that helps finance America’s oil and gas sector and to those who operate commodity-focused investment funds the CFTC regulates.

Subject to the conditions stated in the letters, the relief provided is as follows:

Relief for an Insured Depository Institution Permitting Certain Commodity Swaps to be Excluded in the Major Swap Participant Registration Threshold Calculation. DSIO has granted temporary, targeted no-action relief to a major insured depository institution (IDI) from considering energy-related commodity swaps in determining whether such institution must register with the CFTC as a major swap participant (MSP). The unprecedented drop in global demand for crude oil as a result of the COVID-19 pandemic, followed closely by the OPEC+ supply cut disagreement, has resulted in the price of crude oil decreasing dramatically year to date.  Due to the nature of the IDI’s lending and risk management business with energy exploration and production (E&P) customers, the volatility and low oil prices associated with these events have led to an unprecedented increase in the IDI’s measures relevant to the MSP registration threshold.

Relief for Commodity Pool Operators. DSIO has granted temporary, targeted no-action relief to (Commodity Pool Operators) CPOs from certain reporting requirements. The relief issued by DSIO pertains to the filing deadlines for Form CPO-PQR, Pool Annual Reports, and Pool Periodic Account Statements.

DSIO will not recommend that the Commission take an enforcement action against any CPO for the failure to comply with the following Commission regulations, subject to the applicable conditions stated below:

  • Filing of Form CPO-PQR under Commission regulation 4.27. Any requirement that a Small or Mid-Sized CPO file an annual report on Form CPOPQR pursuant to Commission regulation 4.27, provided that such filing is made by May 15, 2020; or any requirement that a Large CPO file a quarterly report on Form CPO-PQR for Q1 2020 pursuant to Commission Regulation 4.27, provided that such filing is made by July 15, 2020.
  • Pool Annual Reports under Commission Regulations 4.7(b)(3) and 4.22(c). Any requirement that a CPO with a pool annual report due on or before April 30, 2020 file such report pursuant to Commission regulations 4.7(b)(3) or 4.22(c), provided that the annual certified financial statements for its operated commodity pools are filed with the National Futures Association and distributed to pool participants no later than 45 days after the due date for such report. This relief does not foreclose a CPO from requesting an additional extension of time not to exceed a total of 180 days from the end of the pool’s fiscal year consistent with Commission regulation 4.22(f).
  • Pool Periodic Account Statements under Commission Regulations 4.7(b)(2) or 4.22(b). Any requirement that a CPO distribute periodic account statements to pool participants on either a monthly or quarterly basis under Commission regulations 4.7(b)(2) or 4.22(b)(3) provided that such statements are distributed to participants within 45 days of the end of the reporting period for all reporting periods ending on or before April 30, 2020.