CFTC scraps Part 20 routine swap position reporting for physical commodities

The Commodity Futures Trading Commission (CFTC) has issued a final order ending routine position-reporting requirements under Part 20 for physical commodity swaps, eliminating both daily and event-based filings. The order applies to covered entities including clearing organizations, clearing members and swap dealers. The CFTC said the change becomes effective upon publication in the Federal Register. Part 20 was introduced in 2011 as a temporary reporting regime and included a sunset provision under Section 20.9. The Commission said it is now winding down those requirements because other elements of its swap reporting architecture provide sufficient oversight and transparency, citing reporting to registered swap data repositories under Part 49, public and regulatory reporting requirements in Parts 43 and 45, and position limits under Part 150. While routine reports will end, certain recordkeeping obligations remain during a transition period. Firms must continue to maintain records of paired swap and swaption transactions, as well as documentation of futures-equivalent conversion methods. Those records must be produced if the CFTC issues an appropriately scoped special call. The agency said it is not changing the special-call process. CFTC Chairman Michael S. Selig said the order removes significant, unnecessary compliance costs that do not improve regulatory outcomes, while preserving the Commission's ability to obtain the position information it needs through existing reporting channels and retained recordkeeping requirements.