The U.S. Commodity Futures Trading Commission (CFTC) announced on December 11,
2025 that its Division of Market Oversight (DMO) has issued a no-action letter addressing
certain error correction obligations under Part 43 and Part 45 of the CFTC’s swap reporting
rules. This staff position is intended to reduce unnecessary burden and compliance costs
associated with correcting historical errors in swap transaction, pricing, and other swap data
submitted to Swap Data Repositories (SDRs).
Under existing regulations, including § 43.3(e) and § 45.14(a), reporting counterparties — such as
swap dealers, designated contract markets, and swap execution facilities — are required to correct
any errors in swap data that they were obligated to report, regardless of whether the swap has
matured or terminated.
The no-action letter responds to a request from the International Swaps and Derivatives
Association (ISDA), which highlighted the operational and cost burdens of correcting errors for data
on swaps that are no longer open (“Dead Swaps”), as well as certain corrections on open swaps that
relate to historical or non-economic data elements
Key Points of the No-Action Position
Under the DMO’s no-action stance:
- The Division will not recommend enforcement actions against reporting
counterparties for failure to correct errors in Part 45 swap data for swaps that were
matured, terminated, or no longer open as of the latest rule change or two years
before the error discovery, unless the error involves certain critical data elements
such as LEIs or UTIs. - The Division also will not pursue enforcement for certain open swap error corrections,
except for errors in the most recently reported data for a given swap. - For Part 43 data, the Division similarly will refrain from recommending enforcement for
failure to correct errors in data elements other than those listed in Appendix A to Part 43
The letter makes clear that this relief applies “only with respect to enforcement” and does not
change the underlying reporting rule requirements themselves. Market participants are still
expected to comply with all applicable rules unless otherwise stated
Source:
U.S. Commodity Futures Trading Commission — Press Release No. 9151-25 (December 11,
2025)
https://www.cftc.gov/PressRoom/PressReleases/9151-25
CFTC No-Action Letter No. 25-43 — Error Correction Rules (December 10, 2025)
https://www.cftc.gov/csl/25-43/download
I appreciate the focus on helping regional banks specifically. Often, the advice out there is geared towards larger institutions and doesn’t address the specific constraints and opportunities that regional banks face. I think exploring strategies like M&A to achieve operational scale and offset regulatory compliance costs is critical for these banks.