Release Number 7260-15

October 14, 2015

CFTC Further Implements Trade Execution Requirement

Washington, DC — The U.S. Commodity Futures Trading Commission’s (CFTC or Commission) Division of Market Oversight (Division) announced today further extension of time-limited no-action relief for swaps executed as part of a package transaction in the categories, described below, that currently receive relief under CFTC Letter 14-137. This extension of time-limited relief will enable the Division to continue to further assess the appropriate response for applying the trade execution requirement to swaps in certain types of package transactions.

The summary of the relief provided below is intended to be used for reference only and does not represent any grant of no-action relief from the Commodity Exchange Act or the Commission’s regulations. Please refer to today’s letter (CFTC Letter 15-55) for the grant of Division relief.

Package Transaction Category

Relief Expiration

MAT/MAT: Each of the components is a swap subject to the trade execution requirement

Relief expired May 15, 2014 pursuant to CFTC Letter14-12.


MAT/Non-MAT (Cleared): At least one of the components is subject to the trade execution requirement and each of the other components is subject to the clearing requirement

Relief expired June 1, 2014 pursuant to CFTC Letter 14-62.


US Dollar Swap Spreads: Each of the swap components is subject to the trade execution requirement and all other components are U.S. Treasury securities

Relief expired June 15, 2014 pursuant to CFTC Letter 14-62.

MAT/Agency MBS: Each of the swap components is subject to the trade execution requirement and all other components are agency mortgage-backed securities

Relief expired May 15, 2015 pursuant to CFTC Letter 14-137.

MAT/New Issuance Bond: At least one individual swap component is subject to the trade execution requirement and at least one individual component is a bond issued and sold in the primary market

Relief from CEA section 2(h)(8) until November 15, 2016. Under this relief, the swap components subject to the trade execution requirement are not required to be executed on a SEF or DCM.

Relief from Commission Regulation § 37.9 and CEA section 5(d)(9) until November 15, 2016, which permits a SEF or DCM to offer any method of execution for the swap components.

Relief from Commission Regulation § 37.3(a)(2) until November 15, 2016, which permits SEFs to not offer an Order Book as a minimum trading functionality for the swap components.


MAT/Futures: At least one individual swap component is subject to the trade execution requirement and all other components are contracts for the purchase or sale of a commodity for future delivery, i.e., futures contracts. This category may include:

  • MAT swap v. Treasury futures
  • MAT swap v. Eurodollar futures

Relief from CEA section 2(h)(8) until November 15, 2016. Under this relief, the swap components subject to the trade execution requirement are not required to be executed on a SEF or DCM.

Relief from Commission Regulation § 37.9 and CEA section 5(d)(9) until November 15, 2016, which permits a SEF or DCM to offer any method of execution for the swap components.

Relief from Commission Regulation § 37.3(a)(2) until November 15, 2016, which permits SEFs to not offer an Order Book as a minimum trading functionality for the swap components.


MAT/Non-MAT (Uncleared): At least one of the swap components is subject to the trade execution requirement and at least one of the components is a CFTC swap that is not subject to the clearing requirement. This category may include:

  • MAT swap v. swaption
  • MAT swap v. uncleared credit default swap

Relief from Commission Regulation § 37.9 and CEA section 5(d)(9) until November 15, 2016, which permits a SEF or DCM to offer any method of execution for the swap components.

Relief from Commission Regulation § 37.3(a)(2) until November 15, 2016, which permits SEFs to not offer an Order Book as a minimum trading functionality for the swap components.

MAT/Non-Swap Instruments: At least one of the swap components is subject to the trade execution requirement and at least one of the components is not a swap. This category excludes U.S. Dollar Swap Spreads, MAT/Futures, MAT/Agency MBS, and MAT/New Issuance Bond. This category may include:

  • MAT swap v. single-name credit default swap
  • MAT swap v. bond (secondary market transaction)

Relief from Commission Regulation § 37.9 and CEA section 5(d)(9) until November 15, 2016, which permits a SEF or DCM to offer any method of execution for the swap components.

Relief from Commission Regulation § 37.3(a)(2) until November 15, 2016, which permits SEFs to not offer an Order Book as a minimum trading functionality for the swap components.


MAT/Non-CFTC Swap: At least one of the swap components is subject to the trade execution requirement and at least one of the components is a swap over which the CFTC does not have exclusive jurisdiction (e.g., a mixed swap)

Relief from Commission Regulation § 37.9 and CEA section 5(d)(9) until November 15, 2016, which permits a SEF or DCM to offer any method of execution for the swap components.

Relief from Commission Regulation § 37.3(a)(2) until November 15, 2016, which permits SEFs to not offer an Order Book as a minimum trading functionality for the swap components.

Last Updated: October 14, 2015