Release Number 6896-14

March 27, 2014

CFTC Staff Issues an Extension of Time-Limited No-Action Relief to LCH and Nodal

Washington, DC — The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) and Division of Market Oversight (DMO) today issued an extension of time-limited no-action relief to LCH.Clearnet Limited (LCH), a derivatives clearing organization (DCO) registered under Section 5b of the Commodity Exchange Act (CEA), and Nodal Exchange LLC (Nodal), a designated contract market (DCM) under Section 5 of the CEA.

In extending the initial relief (in CFTC Letter 13-53), DCR and DMO state that they will not recommend that the CFTC take enforcement action against (1) LCH and its clearing members, if LCH clears futures contracts and options on futures contracts listed for trading on Nodal (Nodal Contracts) before LCH is authorized to provide such clearing services under an amended DCO registration order, in accordance with Section 5b(a) of the CEA and Commission regulations thereunder; or (2) Nodal, if Nodal Contracts are cleared by LCH before it is authorized to clear such transactions, as required by Section 5(d)(11)(A) of the CEA and Commission Regulation 38.601.

The extension of no-action relief will expire at the earlier of: (i) June 30, 2014 or (ii) the date upon which the Commission approves or denies LCH’s application for an amended DCO registration order to permit it to clear all futures and options on futures, including Nodal Contracts.

Last Updated: March 27, 2014