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Counterparties to inter-affiliate swaps may now qualify for recently issued regulatory relief from mandatory clearing or reporting requirements. On April 1, 2013, the US Commodity Futures Trading Commission ("CFTC") approved Regulation 50.52, which provides a narrow exemption from mandatory clearing under the Commodity  Exchange Act ("CEA") for inter-affiliate swaps, subject to a number of conditions.  A few days later, on April 5, 2013, the Division of Market Oversight and the Division of Clearing and Risk of the CFTC jointly issued no-action relief in CFTC Letter No. 13-09, (the "Inter-affiliate Letter"), which exempts parties from reporting inter-affiliate swaps subject to several conditions.  The exemption from mandatory clearing will become effective on June 10, 2013.  The no-action relief has immediate effect.

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