Release Number 8622-22

CFTC Staff Extends No-Action Position for Certain Types of Package Transactions from the Trade Execution Requirement for Swaps

November 09, 2022

Washington, D.C. — The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) today extended its no-action position for swaps executed as part of a package transaction in the categories described below. This extension will enable DMO to continue to assess the appropriate response for applying the trade execution requirement to swaps in certain types of package transactions. This no-action position will expire at 11:59 pm (ET) on the earlier of: (i) November 15, 2025, or (ii) the applicable effective date or compliance date of a CFTC action, including without limitation a rulemaking or order, that provides a permanent solution.

The summary of the no-action position provided, as explained below, is for reference only.

Package Transaction Category

No-Action Positions

 

MAT/Futures: At least one individual swap component is subject to the trade execution requirement and all other components are contracts for the purchase or sale of a commodity for future delivery, i.e., futures contracts.  This category may include:

  • MAT swap v. Treasury futures
  • MAT swap v. Eurodollar futures

No-action position regarding Commodity Exchange Act (CEA) Section 2(h)(8) for MAT/Futures Package Transactions. Under this no-action position, the swap components subject to the trade execution requirement are not required to be executed on a SEF or DCM. 

No-action position regarding CFTC Regulation 37.9 and CEA Section 5(d)(9) for MAT/Futures Package Transactions. Under this no-action position, a SEF or DCM may offer any method of execution for the swap components.

No-action position regarding CFTC Regulation 37.3(a)(2) for MAT/Futures Package Transactions. Under this no-action position, a SEF may not offer an Order Book as a minimum trading functionality for the swap components.

 

-CFTC-