Designated Contract Markets
Designated contract markets (DCMs) are exchanges that may list for trading futures or option contracts based on all types of commodities and that may allow access to their facilities by all types of traders, including retail customers. Some DCMs have been operating for many years as traditional futures exchanges, while others are new markets that were only recently designated as contract markets by the CFTC. CFTC staff perform regular reviews of each DCM's ongoing compliance with the required core principles called Rule Enforcement Reviews.
Swap Execution Facilities
Section 733 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) adopts new Section 5h of the Commodity Exchange Act (CEA), which provides that no person may operate a facility for the trading or processing of swaps unless the facility is registered as a swap execution facility (SEF) or as a designated contract market (DCM). To be registered and maintain registration, a 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.
Form SEF and SEF Technology Questionnaire
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.
Post Trade Name Give Up FAQs
On June 25, 2020, the CFTC unanimously approved a final rule adopting amendments to § 37.9(d) of its regulations to prohibit post-trade name give-up for swaps executed, pre-arranged, or pre-negotiated anonymously on or pursuant to a SEF's rules and intended to be cleared. Questions that have been raised by market participants in advance of the November 1, 2020 compliance deadline for swaps subject to the trade execution requirement under section 2(h)(8) are answered in the FAQs.