Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: SEF

CFTC Grants Exemption From SEF Registration to Four Additional MTFs

Posted in CFTC
The Commodity Futures Trading Commission has amended its order granting an exemption from swap execution facility (SEF) registration to include four additional multilateral trading facilities: Creditex Brokerage LLP; Currenex; FX Connect; and Thomson Reuters. The order, which was originally issued by the CFTC in December 2017 and discussed in the December 15, 2017 edition of… Continue Reading

CFTC Takes Action on Rules Relating to Swaps and Swap Execution Facilities

Posted in CFTC
On November 5, the Commodity Futures Trading Commission held an open meeting to consider the following matters relating to swaps and swap execution facilities: Final Rule: Amending the De Minimis Exception to the Swap Dealer Definition Proposed Rule: Amendments to Regulations on Swap Execution Facilities and Trade Execution Requirement Request for Comment Regarding the Practice… Continue Reading

CFTC Releases White Paper Addressing Cross-Border Swaps Regulation

Posted in CFTC
On October 1, Commodity Futures Trading Commission Chairman J. Christopher Giancarlo released a white paper addressing the regulation of cross-border swaps. The white paper, titled “Cross-Border Swaps Regulation Version 2.0: A Risk-Based Approach with Deference to Comparable Non-U.S. Regulation,” sets forth various proposed changes to the CFTC’s current cross-border approach.… Continue Reading

CFTC Issues Virtual Currency Advisory for Exchanges and Clearinghouses

Posted in CFTC, Derivatives
On May 21, the Commodity Futures Trading Commission released a staff advisory that provides guidance to designated contract markets (DCMs) and swap execution facilities (SEFs) that plan to list virtual currency derivatives for trading and clearing organizations (DCOs) intending to clear virtual currency derivatives. The advisory notes that the CFTC’s recommendations are informed by the… Continue Reading

CFTC Approves Amendments to Commission Regulations Under Parts 3 and 9

Posted in CFTC, Derivatives
On January 9, the Commodity Futures Trading Commission announced it had unanimously approved final rules that update Parts 3 (Registration) and 9 (Review of Exchange Disciplinary, Access Denial or Other Adverse Actions). These updates integrate existing advisory guidance, incorporate swap execution facilities, and update provisions currently applicable to designated contract markets. The CFTC also approved… Continue Reading

CFTC Approves Exemption From SEF Registration Requirements for Multilateral Trading Facilities and Organized Trading Facilities Authorized Within the EU

Posted in CFTC, Derivatives
On December 8, in response to a request by the European Commission (EC), the Commodity Futures Trading Commission issued an order exempting certain multilateral trading facilities (MTFs) and organized trading facilities (OTFs) authorized within the European Union (EU) from the requirement to register with the CFTC as swap execution facilities (SEFs).… Continue Reading

EU and CFTC Implement Mutual Recognition of Derivatives Trading Venues

Posted in CFTC, Derivatives, EU Developments, Financial Markets
As contemplated by announcements last month, the European Commission (EC) and the Commodity Futures Trading Commission (CFTC) took action this week to implement mutual recognition of derivatives trading venues in advance of the January 3, 2018 compliance date for the Markets in Financial Instruments Directive (MiFID II) requirement that the most liquid derivative instruments that… Continue Reading

CFTC Provides Additional Time for Annual SEF Reports

Posted in CFTC
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) has issued relief to allow swap execution facilities (SEFs) an additional 30 days to prepare and submit their annual compliance reports and financial reports for the fourth quarter. As background, CFTC regulations require each SEF to file a financial report within 60 days after the… Continue Reading

CFTC Extends No-Action Relief for Certain Swaps Executed as Part of Packaged Transactions

Posted in CFTC
On October 31, the Commodity Futures Trading Commission’s Division of Market Oversight extended no-action relief for certain swaps executed as part of packaged transactions. Transactions where at least one swap is subject to a trade execution requirement and either (1) at least one individual component is a bond issued and sold in the primary market… Continue Reading

CFTC Extends No-Action Relief to SEFs Related to Certain Audit Trail Requirements

Posted in CFTC
On October 31, the Commodity Futures Trading Commission’s Division of Market Oversight extended no-action relief to swap execution facilities (SEFs) from the requirement to capture post-execution allocation information in their audit trail data. To rely on the no-action relief, SEFs must (1) have a rule requiring market participations to provide post-execution allocation information upon request… Continue Reading

Three Developments Concerning EU-US Cross-Border Swaps

Posted in CFTC, Derivatives, Dodd-Frank Developments, EU Developments
On October 13, the Commodity Futures Trading Commission and the European Commission (EC) made three announcements that are significant for cross-border swap activity between the United States and Europe. CFTC Margin Rule Comparability Determination. The CFTC has made a determination that the margin rules for uncleared swaps that apply in the European Union are comparable to… Continue Reading

CFTC Grants DCO Registration to LedgerX

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission has issued an order granting LedgerX LLC registration as a derivatives clearing organization (DCO). As specified in the order, LedgerX is permitted to clear fully collateralized digital currency swaps. A transaction will be fully collateralized if LedgerX holds, at all times, funds in the form of the required payment sufficient… Continue Reading

CFTC Grants SEF Registration to LedgerX

Posted in CFTC
The Commodity Futures Trading Commission has issued an order of registration as a swap execution facility (SEF) to LedgerX LLC. As an SEF, LedgerX intends to list options on Bitcoin and other swaps based on digital currencies. As noted in the order, LedgerX additionally has applied for registration as a derivatives clearing organization. More information… Continue Reading

CFTC Extends No-Action Relief to SEFs and DCMs From Certain Error Correction Regulations

Posted in CFTC
On May 30, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight and Division of Clearing and Risk (Divisions) issued Staff Letter 17-27, extending previously granted no-action relief to swap execution facilities (SEFs) and designated contract markets (DCMs) from restrictions on using pre-arranged trades to correct clerical or operational errors that (1) caused a… Continue Reading

CFTC Issues Guidance on the Calculation of Projected Operating Costs by DCMs and SEFs

Posted in CFTC
On April 28, the Commodity Futures Trading Commission issued guidance on the calculation by designated contract markets (DCMs) and swap execution facilities (SEFs) of projected operating costs for purposes of complying with DCM Core Principle 21 and CFTC Regulation 38.1101(c), and SEF Core Principle 13 and CFTC Regulation 37.1303.… Continue Reading

CFTC Grants Registration to NEX SEF Limited

Posted in CFTC, Derivatives
On April 20, the Commodity Futures Trading Commission announced that it had issued an Order of Registration to NEX SEF Limited (NEX) whereby NEX was granted registration status with the CFTC as a swap execution facility (SEF). In granting NEX’s application, the CFTC determined that NEX demonstrated compliance with the Commodity Exchange Act and CFTC… Continue Reading

CFTC Staff Provides Relief Associated With Swap Trade Confirmations

Posted in CFTC, Derivatives
On March 24, the Commodity Futures Trading Commission’s Division of Market Oversight extended no-action relief relating to the recordkeeping and confirmation requirements in CFTC Regulations 37.6(b), 37.1000, 37.1001, 45.2, and 45.3(a). This relief applies only to uncleared swap transactions executed on or pursuant to the rules of a Swap Execution Facility (SEF) and is subject to… Continue Reading

CFTC Proposes to Amend Access to Swap Data Requirements

Posted in CFTC, Derivatives
On January 13, the Commodity Futures Trading Commission approved for publication in the Federal Register proposed amendments to Part 49 of the CFTC’s regulations relating to access to swap data held by Swap Data Repositories (SDR). Among other revisions, the proposal: (1) eliminates the requirement that foreign and domestic authorities seeking access to SDR swap… Continue Reading

CFTC Further Extends Time-Limited Relief to SEFs for Block Trades

Posted in CFTC
On October 7, the Commodity Futures Trading Commission’s Division of Market Oversight and Division of Clearing and Risk issued No-Action Letter No. 16-74 granting relief to Swap Execution Facilities (SEFs) from the requirement in CFTC Regulation 43.2 that a swap block trade must take place away from a SEF’s trading system or platform. The No-Action… Continue Reading

CFTC Staff Issues No-Action Letter Relating to Yieldbroker PTY Limited’s Relief From SEF Registration Requirements

Posted in CFTC, Derivatives
On September 14, the Commodity Futures Trading Commission’s Divisions of Market Oversight and Swap and Intermediary Oversight issued Staff Letter 16-72, which announced that Yieldbroker PTY Limited (Yieldbroker), a multilateral swaps trading facility licensed and regulated in Australia, has qualified for the long-term, no-action relief provided under Staff Letter 15-29. Staff Letter 15-29 provides qualifying… Continue Reading

CFTC Grants SEF Registration Status to Seed SEF LLC

Posted in CFTC, Derivatives
On August 23, the Commodity Futures Trading Commission issued an Order of Registration granting Seed SEF LLC (Seed) full registration status as a Swap Execution Facility (SEF). Upon reviewing Seed’s application, the CFTC determined that Seed is in compliance with the Commodity Exchange Act (CEA) and CFTC regulations applicable to SEFs. As a registered SEF,… Continue Reading

CFTC Approves Clear Markets North America, Inc. as a Registered Swap Execution Facility

Posted in CFTC, Derivatives, Dodd-Frank Developments
On June 27, the Commodity Futures Trading Commission issued an Order of Registration (Order) approving Clear Markets North America, Inc. as a fully registered Swap Execution Facility (SEF). After reviewing Clear Markets’ application, the CFTC determined that Clear Markets is in compliance with the Commodity Exchange Act (CEA) and the CFTC’s regulations applicable to SEFs.… Continue Reading

CFTC Extends No-Action Relief for DCMs and SEFs Pertaining to Clerical and Operation Errors in Swaps Trades

Posted in CFTC, Derivatives
On June 10, the Commodity Futures Trading Commission’s Division of Market Oversight and Division of Clearing and Risk issued No-Action Letter No. 16-58 granting designated contract markets (DCMs) and swap execution facilities (SEFs) relief from relevant provisions of CFTC regulations that would otherwise prohibit the DCM or SEF from facilitating transactions entered into to correct… Continue Reading