Statement of Commissioner Mark Wetjen on the Guidance on Financial Resources for Swap Execution Facilities and Other Recent No-Action Relief

April 23, 2015

“I am pleased that Commission staff has issued this guidance on financial resources for swap execution facilities (SEFs), as well as other recent no-action relief, and I applaud Chairman Tim Massad for moving relief for SEFs forward,” said CFTC Commissioner Mark Wetjen.  “As I have stressed before, I believe that the Commission should take more steps to fulfill Congress’ instruction to promote the trading of swaps on SEFs.  I hope that the Commission will consider revising or clarifying its rules in order to provide more meaningful and certain relief to SEFs.” 

“As I have previously mentioned, further changes the Commission could make that would promote the trading of swaps on SEFs include revising the conditions for the floor-trader exemption, providing relief from the embargo rule for work-up sessions, and ending the practice of name give-up for required transactions executed on an anonymous order book,” said Commissioner Wetjen.  “There are also actions the Commission could take,” continued Commission Wetjen, “to provide clarity and reduce uncertainties caused by our rules, such as considering whether to formalize no-action relief staff has given for error trades, confirmations, package transactions, and block trades, and whether to revise the ‘made available to trade’ process.  I also believe we need to consider further clarification on the subject of this guidance, and consider additional ways to provide a more reasonable and execution method-neutral way for SEFs to comply with the financial resources requirements.”

Commissioner Wetjen said, “I look forward to continuing to work with Chairman Massad on these issues.”

Last Updated: April 23, 2015