June 26, 2014

CFTC’s Division of Clearing and Risk Issues No-Action Letter for Korea Exchange, Inc.

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (DCR) today issued a time-limited no-action letter stating that DCR will not recommend that the Commission take enforcement action against Korea Exchange, Inc. (KRX) for failing to register as a derivatives clearing organization (DCO) pursuant to Section 5b(a) of the Commodity Exchange Act (CEA).

The no-action relief is limited to KRX’s clearing of the proprietary Korean Won-denominated interest rate swaps trades of U.S. clearing members, and is effective until the earlier of December 31, 2014, or the date upon which the Commission either registers KRX as a DCO under Section 5b(a) of the CEA or exempts KRX from registration under Section 5b(h) of the CEA. This no-action letter is consistent with earlier no-action letters granting relief with respect to the clearing of proprietary trades of U.S. clearing members.

Last Updated: June 26, 2014