September 27, 2013
Washington, DC – The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today announced the issuance of a time-limited no-action letter providing relief for temporarily registered swap execution facilities (SEFs) from any enforcement responsibilities under Commission regulations 37.200(a), 37.200(b), 37.201(b)(1), 37.201(b)(3), 37.201(b)(5), 37.202(b) and 37.203 with respect to market participants trading on those SEFs. The no-action relief in this letter only applies to entities that have achieved temporary registration status as SEFs as of October 2, 2013.
While recognizing the important regulatory objectives underlying the enforcement responsibilities for SEFs under Commission regulations 37.200(a), 37.200(b), 37.201(b)(1), 37.201(b)(3), 37.201(b)(5), and 37.203, the Division nevertheless believes that market participants should be provided additional time to review SEF rulebooks and technological specifications before making any written consent to a SEF’s jurisdiction under Commission regulation 37.202(b) and so subject themselves to the rules and requirements of such SEF. The Division further believes that SEFs should be provided additional time to ensure compliance with its enforcement responsibilities under Commission regulations 37.200(a), 37.200(b), 37.201(b)(1), 37.201(b)(3), 37.201(b)(5), and 37.203, due to remaining work related to customer legal documentation, processing customer information, and technological connectivity between SEFs, customers, swap data repositories, and third party regulatory service providers.
DMO emphasizes that while this letter relieves SEFs from certain enforcement responsibilities with respect to participants in their markets, this letter does not relieve SEFs from their current regulatory responsibility to establish and maintain the rules, systems and procedures necessary to carry out those enforcements responsibilities.
This no-action relief shall commence on the date of issuance of this letter and shall expire on November 1, 2013 at 12:01 am EST.
Last Updated: September 27, 2013