I support the continuation of no-action relief that is being provided through the extension of Staff No-Action Letter 20-31 for package transactions where at least one individual swap component is subject to the trade execution requirement, and all other components are futures contracts (MAT/Futures Package Transactions).  This extended no-action relief will benefit market participants that might otherwise be unable to execute MAT/Futures Package Transactions, which are heavily traded in today’s markets, while the Commission continues to consider permanent solutions including, if appropriate, amendments to CFTC regulations.

Yet, the Commission has been considering permanent solutions for 8 years now, ever since this no-action relief was originally provided in 2014.[1]  Because the Commission has failed to do the hard work necessary to resolve the underlying issues presented, the agency’s Staff has had to extend this no-action relief on 5 occasions since then.[2]

Unfortunately, this use of perpetual no-action relief to “kick the can down the road” and avoid tackling difficult issues that arise in applying our rules has become commonplace at the CFTC.  This is now the 6^th time it has happened during my brief tenure as a Commissioner.[3]

These are important issues to participants in the derivatives markets we regulate.  Solving them is our job, and should be a top priority for the CFTC.  We can and should do better.

I commend the agency’s Staff for providing relief to market participants in the absence of action by the Commission.  And I once again urge the Commission to stop relying on temporary (and often successive) band-aids and work-arounds and exercise the leadership that is expected of us.