How to Register as a Swap Execution Facility
To be registered and maintain registration, a swap execution facility (SEF) must comply with fifteen enumerated core principles and any requirement that the CFTC may impose by rule or regulation. On May 16, 2013, the CFTC voted to approve for publication in the Federal Register final SEF regulations, guidance and acceptable practices.
SEF applicants must complete and submit Form SEF and the Technology Questionnaire as part of their SEF applications. The Questionnaire must be completed by SEF applicants per Exhibit V to Form SEF. SEF applicants must electronically file Form SEF and the Questionnaire with the Commission.
Application Process for Registration as a Swap Execution Facility
Applicants for registration – including applicants amending a pending application and existing SEFs applying for an amendment to their registration order – must file Form SEF electronically with the Secretary of the Commission at [email protected], pursuant to the application procedures set forth in CFTC Regulation 37.3. Form SEF is available in Appendix A to Part 37 of the CFTC’s regulations. The application must include information sufficient to demonstrate compliance with the core principles specified in section 5h of the Commodity Exchange Act (CEA). An application will not be considered to be materially complete unless the applicant has submitted, at a minimum, the exhibits required by Form SEF.
The Commission will review new applications for registration as a SEF pursuant to the 180-day time frame and procedures specified in Section 6(a) of the CEA. The Commission shall issue an order granting registration upon a Commission determination, in its own discretion, that the applicant has demonstrated compliance with the CEA and the CFTC’s regulations. If deemed appropriate, the Commission may issue an order granting registration subject to conditions.
Part 37 Application Procedures
An applicant must demonstrate compliance with the 15 core principles set forth in Section 5h of the CEA and with the provisions of Part 37 of the CFTC’s regulations.
Appendix A to Part 37 includes Form SEF, which contains instructions and a list of necessary information and documentation required to initiate the registration process.
Appendix B to Part 37 provides guidance to applicants on how SEFs can remain in compliance with the core principles. For certain core principles, Appendix B also provides acceptable practices for meeting selected requirements.