CFTC issues no-action relief for swap data error correction

Overview

On December 10, 2025, the Commodity Futures Trading Commission (CFTC or Commission) Division of Market Oversight (DMO) issued No-Action Letter No. 25-43 (the No-Action Letter) responding to a request from the International Swaps and Derivatives Association (ISDA) which sought relief from certain error correction requirements under CFTC Regulations 43.3(e) and 45.14(a).¹ These regulations mandate that reporting counterparties correct errors in swap transaction and pricing data and swap data submitted to Swap Data Repositories (SDRs), regardless of whether the swap is still open or has matured.² Market participants have expressed concerns that these obligations impose significant operational and financial burdens, particularly for swaps that have terminated or matured (commonly referred to as “Dead Swaps”).

Under the No-Action Letter, three categories of reporting data have received a correction waiver:

• Dead Swaps: Relief from error correction requirements for swaps that are no longer open, especially if the swap matured or terminated before the effective date of new reporting rules or more than two years before the error was discovered.
• Open Swaps: Relief from correcting errors in all previously reported data for open swaps, limiting corrections to only the most recently reported data.
• Part 43 Data: Relief from correcting errors in Part 43 data except for specific data elements (see below for more details) and only for data submitted within certain timeframes.

Background

The CFTC requires swap market participants report transaction and pricing data under CFTC Regulations Parts 43 and 45 and obligate reporting counterparties to correct any errors in swap data submitted to SDRs, regardless of whether the swap is still open or has matured.

While ISDA noted in its request letter that it “support[s] the Commission’s mission of enhancing market transparency and price discovery, promoting financial stability and preventing market abuses,” it highlighted that the current error correction requirements impose substantial operational and financial burdens, principally for Dead Swaps and for historical data on Open Swaps. ISDA argued that the costs and practical difficulties of correcting all past errors often outweigh the regulatory benefits, particularly when the errors relate to non-critical data elements.

Accordingly, ISDA petitioned the CFTC to exercise enforcement discretion and limit mandatory corrections to key data fields pursuant to 17 C.F.R. § 140.99, which permits the Commission to issue no-action letters.

Key highlights

The DMO has taken the non-binding position that it will not recommend enforcement action against reporting counterparties under the following circumstances.³

First, with respect to Dead Swaps, the DMO will not pursue enforcement for failure to correct errors in swaps that matured, terminated or otherwise ceased to be open as of the effective date of the most recent changes to Part 43 or Part 45 or two years prior to the discovery of the error. However, corrections remain required for critical data elements such as Legal Entity Identifiers (LEIs), Unique Transaction Identifiers (UTIs) and data elements listed in Appendix A to Part 43.⁴

Second, for open swaps, the DMO will not recommend enforcement for failure to correct historical errors beyond the most recently reported data for a given swap, thereby limiting the scope of required corrections.

Third, with respect to Part 43 data, enforcement discretion applies to errors outside of Appendix A data elements and to data submitted prior to the later of the most recent rule change or one year before error discovery. These positions reflect the DMO’s recognition of the disproportionate costs associated with correcting historical data errors compared to their regulatory benefits.

Implications for market participants

This no-action relief provides meaningful regulatory flexibility for market participants. The DMO will not recommend enforcement actions against reporting counterparties for failure to undertake costly and time-consuming corrections for non-critical data elements in Dead Swaps or for historical submissions in open swaps. Instead, the DMO indicates it will focus compliance efforts on ensuring accuracy in key data fields such as LEIs, UTIs and Appendix A elements, as well as maintaining integrity in the most recent swap data submissions.

Market participants may consider reviewing and updating their internal compliance policies to reflect this relief, prioritize resources toward correcting critical data elements and maintain robust documentation of compliance decisions.

It is important to note that this relief is limited to enforcement discretion and does not absolve firms from other obligations under the Commodity Exchange Act or CFTC regulations. Firms should also monitor for any future guidance or modifications to this no-action position, as the DMO retains authority to alter or withdraw the relief at its discretion.

Special thanks to senior counsel Stephan Ariyan for assisting in the preparation of this article.