August 6, 2013

CFTC’s Division of Market Oversight Issues an Amendment to Previously Issued No-Action Relief for Certain Commodity Trading Advisors and Investment Advisors from the Prohibition of Aggregation for Large Notional Off-Facility Swaps

Washington, DC — The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) today issued an amendment to CFTC No-Action Letter No. 13-48 previously issued by the Division on July 30, 2013 (Letter 13-48). Letter 13-48 grants relief from grants relief from the aggregation prohibition in § 43.6(h)(6) for certain commodity trading advisors (CTAs) and investment advisors (IAs) with respect to large notional off-facility swaps. The no-action letter provides that until October 1, 2013 at 11:59 pm EST, the Division will not recommend that the Commission take enforcement action against CTAs and IAs that aggregate orders for the purpose of executing large notional off-facility swaps, provided they meet specified conditions. The letter also grants relief from the aggregation prohibition in § 43.6(h)(6), for CTAs and IAs, subject to similar conditions as laid out in §43.6(h)(6), aggregating orders for swaps that are not listed on a swap execution facility (SEF) or a designated contract market (DCM).

The amended letter acknowledges that while there are in fact DCMs that currently offer swaps, those offerings are fairly limited, and the Division intends to maintain the no-action position as originally stated through October 1, 2013.

Last Updated: August 6, 2013