October 31, 2013

CFTC Seeks Public Comment on Certification from MarketAxess SEF Corporation to Implement Available-to-Trade Determinations for Certain Credit Default Swaps

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) is requesting public comment on a certification from MarketAxess SEF Corporation (MarketAxess) to implement available-to-trade determinations for certain credit default swap contracts. MarketAxess submitted its available-to-trade determinations to the CFTC on a self-certified basis pursuant to CFTC regulations 37.10 and 40.6. If MarketAxess’s submission is deemed certified by operation of CFTC regulation 40.6, such swap contracts, whether listed or offered by MarketAxess or any other designated contract market (DCM) or swap execution facility (SEF), will be subject to the trade execution requirement under section 2(h)(8) of the Commodity Exchange Act (CEA). All transactions involving swaps that are subject to the trade execution requirement generally must be executed on either a DCM or a SEF. In addition, to the extent that such transactions are executed on a SEF, they must be executed in accordance with the execution methods prescribed by CFTC regulation 37.9(a)(2).

The Division of Market Oversight, under delegated authority from the CFTC, has stayed MarketAxess’s submission, pursuant to CFTC regulations 40.6(c) and 40.7(a)(2)(iii), to provide the CFTC with additional time to analyze the submission in light of the novel or complex issues related to MarketAxess’s initial available-to-trade determinations. The CFTC has 90 days to review the submission, ending on January 29, 2014. Consistent with CFTC regulation 40.6(c)(2), MarketAxess’s submission will be subject to a 30-day comment period within the stay period.

The comment period will close on December 2, 2013.

Comments may be submitted electronically through the CFTC’s Comments Online process. All comments will be posted on the CFTC’s website.

Last Updated: October 31, 2013