The Division of Swap Dealer and Intermediary Oversight and the Division of Market Oversight (Divisions) of the Commodity Futures Trading Commission expanded and extended the no-action relief previously granted to commodity trading advisors (CTAs) that are registered with the CFTC and are members of designated contract markets (DCMs) or swap execution facilities (SEFs) from the requirement, under CFTC Regulation 1.35(a), to record certain oral communications.
Pursuant to the relief, CTAs that are members of a DCM or SEF will not be required to maintain records of any oral communications that lead to the execution of a transaction in a commodity interest (i.e., a futures contract, an option on a futures contract or a swap) or any related cash or forward transactions. In contrast, the previous relief had been limited to those oral communications that lead to the execution of swap transactions.
With respect to the form and manner requirements of Regulation 1.35(a), the Divisions have also relieved all market participants of the requirement that records of oral and written communications that lead to the execution of a transaction be linked or otherwise identified with a particular transaction.
This relief is set to expire on December 31, 2015.
CFTC Letter No. 14-147 is available here.