CFTC Staff Letter 14-27: Extension of No-Action Relief to Eurex Clearing for Sections 5b(a) and 2(h)(1)(A)

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5188
Facsimile: (202) 418-5547 aradhakrishnan@cftc.gov a Ananda Radhakrishnan Director Division of Clearing and Risk CFTC Letter No. 14-27 No-Action March 10, 2014 Division of Clearing and Risk Mr. Thomas Book, Chief Executive Officer Mr. Oliver Haderup, Executive Director Eurex Clearing AG Mergenthalerallee 61 65760 Eschborn, Germany Re: Extension of Time-Limited 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. Book and Mr. Haderup:
This is in response to your letter dated December 17, 2013 (“Letter”), to the Division of Clearing and Risk (“Division”) of the Commodity Futures Trading Commission (“Commission” or “CFTC”) requesting an extension of the no-action relief that the Division granted to Eurex Clearing AG (“Eurex Clearing”) in CFTC Letter 13-44 and that expired on December 31, 2013 (the “No-Action Relief”). 1 In CFTC Letter 13-44, the Division stated it would not recommend that the Commission take enforcement action against (1) Eurex Clearing for failure to register as a derivatives clearing organization (“DCO”) pursuant to the requirements of Section 5b(a) of the Commodity Exchange Act (“CEA”),2 or (2) clearing members of Eurex Clearing that are U.S. persons (each, a “U.S. Clearing Member”) for failure to clear certain interest rate swaps (“IRS”) or certain credit default swaps (“CDS”) on a broad-based index of reference entities (“Index CDS”)3 through a registered or exempt DCO pursuant to the requirements of Section 2(h)(1)(A) of the CEA and the implementing