CFTC Staff Letter 13-43: No-Action Relief for LCH.Clearnet Regarding Sections 5b(a) and 2(h)(1)(A) of the Commodity Exchange Act

U.S. COMMODITY FUTURES TRADING COMMISSION
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Facsimile: (202) 418-5547 aradhakrishnan@cftc.gov a Ananda Radhakrishnan Director Division of Clearing and Risk CFTC Letter No. 13-43 No-Action Division of Clearing and Risk LCH.Clearnet SA CEO 18 rue du Quatre Septembre Paris, France 750002 Re: No-Action Relief with Regard to Sections 5b(a) and 2(h)(1)(A) of the Commodity Exchange Act and Implementing Regulations Thereunder Dear Mr. Hémon:
This is in response to your letter dated July 2, 2013 (“Letter”), to the Division of Clearing and Risk (“Division”) of the Commodity Futures Trading Commission (“Commission”). In the Letter, you request that the Division confirm that it will not recommend that the Commission take enforcement action against (1) Banque Centrale de Compensation, doing business as LCH.Clearnet SA (“LCH.C SA”) for failure to register as a derivatives clearing organization (“DCO”) pursuant to Section 5b(a) of the Commodity Exchange Act (“CEA”), 1 or (2) clearing members of LCH.C SA that are U.S. persons (each, a “U.S. CDS Clearing Member”) for failure to clear certain credit default swaps (“CDS”) on a broad-based index of reference entities (“Index CDS”) through a registered DCO pursuant to
Section 2(h)(1)(A) of the CEA and the implementing regulations thereunder as applicable.