Release Number 6750-13

October 25, 2013

CFTC’s Division of Clearing and Risk and Division of Market Oversight Provide Time-Limited No-Action Relief for swap execution facilities (“SEFs”) from compliance with certain requirements of Commission Regulations 37.9(a)(2) and 37.203(a)

Washington, DC – The Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk and Division of Market Oversight (together, “the Divisions”) today announced the issuance of no-action letter providing time-limited relief for swap execution facilities (“SEFs”) from compliance with certain requirements of Commission Regulations 37.9(a)(2) and 37.203(a).

The Divisions will not recommend that the Commission take any enforcement action against a SEF for failure to comply with Regulation 37.9(a)(2) regarding methods of execution for required or permitted transactions or Regulation 37.203(a)’s prohibition of pre-arranged trading, if, after a trade has been rejected for clearing for clerical or operational errors or omissions, the SEF permits a new trade, with terms and conditions that match the terms and conditions of the original trade, other than any such error and the time of execution, to be submitted for clearing without having been executed pursuant to the methods set forth in Regulation 37.9(a)(2).

Additionally, in order for a SEF to avail itself of the no-action relief, the SEF must submit to following conditions:

This letter does not relieve SEFs from any other requirements applicable under the Commodity Exchange Act or the Commission’s regulations thereunder.

This no-action relief commences on October 25, 2013, and expires on June 30, 2014.

 

Last Updated: October 25, 2013