October 17, 2013
CFTC’s Division of Market Oversight Provides No-Action Relief to Applicant Seeking Temporary Registration as a Swap Execution Facility
Time-Limited No Action Relief Provided to LatAm SEF, LLC Pending Consideration of Application
Washington, DC – The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today announced the issuance of a no-action letter providing time-limited relief for LatAm SEF, LLC (LatAm). DMO will not recommend that the CFTC take enforcement action against LatAm for failure to register as a swap execution facility (SEF) under Section 5h(a)(1) of the Commodity Exchange Act (Act) or CFTC Regulation 37.3(a)(1), or against any market participants for use of, or other relationships with, LatAm, based on LatAm’s failure to register as a SEF.
LatAm currently operates a U.S.-based multilateral trading platform which brings together multiple third-party buying and selling interests in Mexican Peso interest rate swaps.
On September 25, 2013, LatAm submitted to the CFTC, pursuant to CFTC Regulation 37.3(b), an application for SEF registration. By letter dated October 2, 2013, LatAm requested that DMO not recommend that the CFTC take enforcement action against LatAm for failure to register as a SEF. As part of its request, LatAm represented that it would, during the pendency of its no-action relief: (1) comply with all of the substantive requirements applicable to SEFs under the Act and the CFTC’s regulations, and (2) comply with any CFTC staff-issued guidance and no-action relief applicable to SEFs issued on or after September 26, 2013.
This no-action relief will commence on October 17, 2013 and expire upon the earlier of: (1) the date that the CFTC grants or denies temporary SEF registration to LatAm, or (2) November 19, 2013 at 12:01 am EST.
Last Updated: October 17, 2013