The Commodity Futures Trading Commission’s Market Participants Division today announced it has issued a no-action letter to the Structured Finance Association, in the context of qualifying credit risk transfer (CRT) transactions engaged in by their member financial institutions and certain commodity pool operator (CPO) requirements.

This letter further extends no-action positions provided by DMO for those package transactions where at least one individual swap component is made available to trade and therefore subject to the trade execution requirement under CEA section 2(h)(8), and all other components are contracts for the purchase or sale of a commodity for future delivery, i.e. futures contracts (“MAT/Futures Package Transactions”).

No-Action Relief to JSCC from Reg. 39.6(b)(1) and CEA Sec. 4d(f) and 4m(1)

No-action position to UBS Europe SE in relation to statutory disqualification condition of CFTC Staff Letter No. 12-70 with respect to its affiliate support activities.

No-action postion with respect to Part 43 and Part 45 reporting, as well as related sections of Parts 38 and 39, for binary options executed on or pursuant to the rules of QCX, LLC and cleared through QC Clearing LLC.

No-action postion with respect to Part 43 and Part 45 reporting, as well as related sections of Parts 38 and 39, for binary options and variable payout contracts executed on or pursuant to the rules of Railbird Exchange, LLC and cleared through QC Clearing LLC.

No-action position stating the Division will not recommend the Commission take an enforcement action against a reporting counterparty that fails to submit a swap data error correction notification with respect to an error if, at the time the reporting counterparty initially discovers and assesses the impact of an error, the reporting counterparty makes a reasonable determination that the number of reportable trades affected by the error does not exceed five percent of the reporting counterparty’s open swaps for the relevant asset class in swaps for which it was the reporting counterparty.

No-action letter stating that the Division will not recommend that the Commission commence an enforcement action against a swap execution facility (“SEF”) that does not satisfy the minimum trading functionality requirement set forth in Commission regulation 37.3(a)(2) by offering an order book as defined in Commission regulation 37.3(a)(3) (an “Order Book”), in connection with swap transactions executed on the SEF that are not subject to the trade execution requirement in Commodity Exchange Act (“CEA” or “Act”) section 2(h)(8) (“Permitted Transactions”).

No-action postion with respect to Part 43 and Part 45 reporting, as well as related sections of Parts 38 and 39, for binary options executed on or pursuant to the rules of CME and cleared through CME.