Section 5h(a)(1) of the Commodity Exchange Act (CEA) prohibits the operation of 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).
CEA section 5h(g) authorizes the Commission to grant an exemption from SEF registration if it determines that a foreign swap trading facility is subject to “comparable, comprehensive supervision and regulation on a consolidated basis” by the appropriate governmental authorities in the facility’s home country.
Foreign swap trading facilities that have been granted an exemption under CEA section 5h(g) can be used to execute swaps that are subject to the trade execution requirement under CEA section 2(h)(8). In addition, these “exempt SEFs” can offer trading in swaps that are not subject to the trade execution requirement to U.S. person counterparties that qualify as eligible contract participants.
An exemption under CEA section 5h(g) does not otherwise affect applicable requirements under the CEA and CFTC regulations. In the CEA section 5h(g) exemptive orders that it has issued, the Commission has particularly highlighted certain requirements that continue to apply when transacting swaps on exempt SEFs.
Foreign Swap Trading Facilities Exempt from SEF Registration Requirement
The Commission has issued CEA section 5h(g) orders exempting from SEF registration certain swap trading facilities in the following jurisdictions:
European Union
The following CEA section 5h(g) order, and amendment thereto, exempts certain multilateral trading facilities (MTFs) and organized trading facilities (OTFs) authorized in the European Union (EU) from SEF registration:
- Order of Exemption for Multilateral Trading Facilities and Organised Trading Facilities Authorized within the European Union(December 2017)
- Amendment to Appendix A to Order of Exemption for Multilateral Trading Facilities and Organised Trading Facilities Authorized within the European Union (December 2018)
List of swap trading facilities within the EU covered by the Order of Exemption
Trading Facility Name |
Category (MTF or OTF) |
Home Country |
360 Treasury Systems AG |
MTF |
Germany |
Aurèl BGC OTF |
OTF |
France |
Bloomberg Multilateral Trading Facility Limited |
MTF |
United Kingdom |
BGC Brokers LP |
OTF |
United Kingdom |
BTFE |
MTF |
Netherlands |
CAPI OTF |
OTF |
Spain |
CIMD OTF |
OTF |
Spain |
Creditex Brokerage LLP |
MTF |
United Kingdom |
Currenex |
MTF |
United Kingdom |
Digital Vega FX |
MTF |
United Kingdom |
Dowgate |
MTF |
United Kingdom |
EBS MTF |
MTF |
Netherlands |
FX Connect |
MTF |
United Kingdom |
GFI Brokers Limited |
OTF |
United Kingdom |
HPC OTF |
OTF |
France |
ICAP EU OTF |
OTF |
France |
ICAP Securities |
OTF |
United Kingdom |
ICAP WCLK |
MTF |
United Kingdom |
iSWAP |
MTF |
United Kingdom |
iSwap Euro B.V. |
MTF |
Netherlands |
KBL OTF |
OTF |
United Kingdom |
Sunrise Brokers LLP |
OTF |
United Kingdom |
Thomson Reuters |
MTF |
United Kingdom |
TP ICAP EU MTF |
MTF |
France |
Trad-X |
MTF |
United Kingdom |
Tradeweb EU B.V. |
MTF |
Netherlands |
Tradeweb Europe Limited |
MTF |
United Kingdom |
Tradition |
OTF |
United Kingdom |
Tradition-NEX OTF |
OTF |
United Kingdom |
TSAF OTC OTF |
OTF |
France |
Tullett Prebon Europe |
OTF |
United Kingdom |
Tullett Prebon Europe |
MTF |
United Kingdom |
Tullett Prebon EU OTF |
OFT |
France |
Japan
The following CEA section 5h(g) order exempts certain electronic trading platforms (ETPs) authorized in Japan from SEF registration:
List of swap trading facilities within Japan covered by the Order of Exemption
Trading Facility Name |
Category |
Home Country |
BGC Shoken Kaisha Limited (Tokyo branch) |
ETP |
Japan |
Bloomberg Tradebook Japan Ltd. |
ETP |
Japan |
Clear Markets Japan Inc. |
ETP |
Japan |
Totan ICAP Co., Ltd. |
ETP |
Japan |
Tradeweb Japan Ltd. |
ETP |
Japan |
Tullet Prebon ETP Japan Ltd. |
ETP |
Japan |
Ueda Tradition Securities Ltd. | ETP | Japan |
Singapore
The following CEA section 5h(g) order exempts certain approved exchanges (AEs) and recognised market operators (RMOs) authorized in Singapore from SEF registration:
- Amendment to Appendix A to Order of Exemption for Multilateral Trading Facilities and Organised Trading Facilities Authorized Within the European Union from the Requirement to Register with the Commodity Futures Trading Commission as Swap Execution Facilities (October 2020)
- Order of Exemption for Approved Exchanges and Recognised Market Operators Authorized within Singapore (March 2019)
List of swap trading facilities within Singapore covered by the Order of Exemption
Trading Facility Name |
Category (AE or RMO) |
Home Country |
Asia Pacific Exchange Pte Ltd. |
AE |
Singapore |
BGC Partners (Singapore) Ltd. | RMO | Singapore |
Cleartrade Exchange Pte Ltd. |
RMO |
Singapore |
Euronext Markets Singapore Pte Ltd. | RMO | Singapore |
GFI Group Pte Ltd. | RMO | Singapore |
ICAP (Singapore) Pte Ltd. | AE | Singapore |
ICE Futures Singapore Pte Ltd. |
AE |
Singapore |
Nittan Capital Singapore Pte Ltd. | RMO | Singapore |
Refinitiv Transaction Services Pte Ltd. | RMO | Singapore |
Singapore Exchange Derivatives Trading Limited |
AE |
Singapore |
TFS Currencies Pte Ltd. | RMO | Singapore |
Tradition Singapore (Pte) Ltd |
RMO |
Singapore |
Tullett Prebon (Singapore) Limited | RMO | Singapore |