October 29, 2013

CFTC Seeks Public Comment on Certification from TW SEF LLC to Implement Available-to-Trade Determinations for Certain Interest Rate and Credit Default Swaps

Washington, DC – The Commodity Futures Trading Commission (CFTC or Commission) is requesting public comment on a certification from TW SEF LLC (TW SEF) to implement available-to-trade determinations for certain interest rate and credit default swap contracts. TW SEF submitted its available-to-trade determinations to the Commission on a self-certified basis pursuant to Commission regulations 37.10 and 40.6. If TW SEF’s submission is deemed certified by operation of Commission regulation 40.6, such swap contracts, whether listed or offered by TW SEF 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 Commission regulation 37.9(a)(2).

The Division of Market Oversight, under delegated authority from the Commission, has stayed TW SEF’s submission, pursuant to Commission regulations 40.6(c) and 40.7(a)(2)(iii), to provide the Commission with additional time to analyze the submission in light of the novel or complex issues related to TW SEF’s initial available-to-trade determinations. The Commission has 90 days to review the submission, ending on January 27, 2014. Consistent with Commission regulation 40.6(c)(2), TW SEF’s submission will be subject to a 30-day comment period within the stay period.

The comment period will close on November 29, 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 29, 2013