CFTC Staff Letters

DMO will not recommend that the Commission take an enforcement action against any SEF or SEF CCO for failure to submit an ACR within the 60-day period prescribed in Commission regulation 37.1501(f)(2), provided that: (a) the ACR was required to be submitted to the Commission prior to September 1, 2020, pursuant to Commission regulation 37.1501(f)(2); and (b) the ACR is submitted to the Commission not later than 120 days after the end of the SEF’s fiscal year. Additionally, DMO will not recommend that the Commission take an enforcement action against any SEF or SEF CCO for failure to submit the fourth quarter financial report pursuant to Commission regulation 37.1306(d), within the 60-day period prescribed in Commission regulation 37.1306(d); provided, that: (a) the fourth quarter financial report was required to be submitted to the Commission prior to September 1, 2020, pursuant to Commission regulation 37.1306(d); and (b) the fourth quarter financial report is submitted to the Commission no later than 120 days after the end of the SEF’s fiscal year.

Subject to the conditions specified in the letter, DMO will not recommend that the Commission take an enforcement action against any SEF for the failure to comply with Commission regulations 37.205(a)-(b), 37.400(b), 37.406, 37.1000(a)(1), and 37.1001 to the extent that non-compliance arises from the inability of SEFs to record voice communications as a result of the displacement of voice trading personnel from their normal business sites in connection with the COVID-19 pandemic response.

No-action positions for swap dealers to facilitate physical separation of personnel in response to the COVID-19 pandemic

No-action positions for retail foreign exchange dealers to facilitate physical separation of personnel in response to the COVID-19 pandemic

No-action positions for floor brokers to facilitate physical separation of personnel in response to the COVID-19 pandemic

No-action positions for futures commission merchants and introducing brokers to facilitate physical separation of personnel in response to the COVID-19 pandemic

No-action positions for certain members of designated contract markets and swap execution facilities to facilitate physical separation of personnel in response to the COVID-19 pandemic

This relief revises CFTC Staff No-Action Letter 17-27 with respect to the error correction process for cleared erroneous swaps.

No-action relief granted to a swap dealer concerning the calculation of initial margin under Commission regulation 23.154.

No-action relief from the swap clearing requirement for amendments to legacy uncleared swaps to facilitate orderly transition from inter-bank offered rates to alternative risk-free rates.