March 28, 2014

CFTC’s Division of Clearing and Risk Issues Time-Limited No-Action Letter for Singapore Exchange Derivatives Clearing Limited and its Clearing Members

Washington, DC — The Commodity Futures Trading Commission (Commission) Division of Clearing and Risk (DCR) today issued a time-limited no-action letter to the Singapore Exchange Derivatives Clearing Limited (SGX-DC), a registered derivatives clearing organization.

In the letter, DCR states that it will not recommend that the Commission take enforcement action against SGX-DC’s clearing members for failing to comply with the Commodity Exchange Act (CEA) Section 4d(f)(1) futures commission merchant (FCM) registration requirements in carrying existing positions and accepting for clearing offsetting positions in certain commodity swaps for U.S. customers or customers of FCMs that clear through an FCM omnibus customer account; or SGX-DC for engaging in activities related to its clearing members carrying and accepting for clearing such customer positions. The relief is subject to specified conditions, including expiration on April 30, 2014.

This no-action relief is an extension of relief that was granted by DCR to SGX-DC and its clearing members in December 2013, modified to explicitly include relief with respect to clearing for customers of FCMs that clear through an FCM omnibus customer account. Under the 2013 no-action letter (CFTC No-Action Letter 13-74), similar relief was granted until the earlier of (i) March 31, 2014, or (ii) the date upon which the positions of U.S. customers were to be held only by clearing members that are registered FCMs.

Last Updated: March 28, 2014