On December 15, the Commodity Futures Trading Commission Division of Clearing and Risk granted US swap participants temporary no-action relief from the required clearing rule with respect to swaps entered into with eligible affiliate counterparties located in Australia and Mexico. The no-action relief will expire on December 31, 2017.

Currently, US swap participants are exempt from the mandatory swap clearing requirements in connection with swaps entered into with eligible affiliate counterparties located in the European Union, Japan and Singapore, subject to certain terms and conditions. The no-action letter extends the same relief to US swap participants that enter into swaps with eligible affiliate counterparties located in Australia and Mexico.

More details can be found in CFTC Letter 16-84, which is available here.