US CFTC to give pass over certain swap reporting failures tied to SVB, Signature Bank contracts

WASHINGTON (Reuters) – The U.S. Commodity Futures Trading Commission on Wednesday said it would give a pass to firms that cannot meet certain swap reporting requirements following the recent failures of Silicon Valley Bank and Signature Bank (NASDAQ:).

The agency has been in contact with banking regulators about the Federal Deposit Insurance Corporation’s transfer of qualified financial contracts from the failed banks to newly established bridge banks, it said in a notice published on its website.

The Commission will not launch enforcement actions against any counterparties that cannot meet agency reporting requirements for swaps contracts solely from the FDIC transfers, it said. Those may include business conduct, margin, clearing and trade execution requirements.

Firms should “should use best efforts to fulfill their reporting obligations with respect to such swaps,” the CFTC said.