RegAlert2014-02-10 | CFTC Staff Letter 14-12Added · Updated
CFTC Staff Letter 14-12: No-Action Relief for Package Transactions
The Division grants time-limited no-action relief until 11:59 p.m. Eastern Time on May 15, 2014, to entities or counterparties transacting package transactions from the requirements of Commodity Exchange Act section 2(h)(8). The relief also exempts Swap Execution Facilities and Designated Contract Markets from the requirements of Commission Regulation § 37.9 and Commodity Exchange Act section 5(d)(9) with respect to facilitating trading in such package transactions. A package transaction is defined as a transaction involving two or more instruments executed between two counterparties, priced as one economic transaction with simultaneous execution, containing at least one swap subject to the trade execution requirement, where execution of each component is contingent upon the execution of all others. This relief does not excuse affected persons from compliance with other applicable requirements, including swap reporting, clearing, pre-execution credit checks, and straight-through processing.
CFTC published 6 documents in the last 30 days — get each new one by email the day it lands.
U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Facsimile: (202) 418-5521 www.cftc.gov
Division of
Market Oversight
CFTC Letter No. 14-12
No-Action
February 10, 2014
Division of Market Oversight
No-Action Relief from the Commodity Exchange Act Sections 2(h)(8) and 5(d)(9) and from Commission Regulation § 37.9 for Swaps Executed as Part of a Package Transaction Ladies and Gentlemen:
This letter responds to requests received from multiple parties by the Division of Market Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission”) for no-action relief from the trade execution requirement in Commodity Exchange Act (“CEA”)
section 2(h)(8) for package transactions, as defined herein.1
Background
Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”)2 amended the CEA to establish a comprehensive new regulatory framework for swaps. Among other things, CEA section 2(h)(8) requires that transactions involving swaps subject to the CEA section 2(h)(1) clearing requirement be executed on a designated contract market (“DCM”) or swap execution facility (“SEF”), unless no DCM or SEF makes such swap available to trade or such swap transactions qualify for the clearing exception under CEA section 2(h)(7).3
Read the rest free, and get an email when CFTC publishes again
Lineage: Superseded
Timeline
Amended 1 time · last 2014-05-01
Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
More like this from CFTC
CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.