CFTC Staff Letter 14-46: Conditional No-Action Relief for Swaps Trading on EU-Overseen Multilateral Trading Facilities

U.S. COMMODITY FUTURES TRADING COMMISSION
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CFTC Letter No. 14-46
No-Action
April 9, 2014
Division of Market Oversight
Division of Swap Dealer and Intermediary Oversight Conditional No-Action Relief with respect to Swaps Trading on Certain Multilateral Trading Facilities Overseen by Competent Authorities Designated by European Union Member States This no-action letter supersedes CFTC No-Action Letter No. 14-16 (“No-Action Letter 14-16”), which was issued jointly by the Divisions of Market Oversight (“DMO”) and Swap Dealer and Intermediary Oversight (“DSIO”) (together, the “Divisions”) of the Commodity Futures Trading Commission (“CFTC” or “Commission”) on February 12, 2014.1 No person may rely upon the relief provided in No-Action Letter 14-16 after the date hereof. DMO and DSIO are jointly issuing this letter to provide conditional no-action relief for: (1) qualifying multilateral trading facilities overseen by competent authorities designated by European Union Member States (“Qualifying MTFs”)2 from the swap execution facility (“SEF”) registration requirement set out in section 5h(a)(1) of the Commodity Exchange Act (“CEA” or “Act”)3 and Commission regulation 37.3(a)(1); 4 (2) parties executing swap transactions on Qualifying MTFs from (i) the trade execution mandate set out in section 2(h)(8) of the Act;5 and (ii) their obligations to report part 45 creation data and the initial part 43 data associated with such swap transactions once a Qualifying MTF begins reporting part 45 creation data and the initial part 43 data associated with swap transactions to a Commission-registered or 1 See CFTC No-Action Letter No. 14-16 (February 12, 2014), available at http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-16.pdf. 2 The relief provided by this letter is only available to Qualifying MTFs. For purposes of this letter, DMO and DSIO define the term Qualifying MTFs to mean multilateral trading facilities (“MTFs”) overseen by competent authorities designated by European Union Member States, and as defined in The Markets in Financial Instruments Directive, that satisfy the conditions set out in this letter. See infra notes 40-41 and accompanying text. 3 7 U.S.C. § 7b-3(a)(1). 4 See 17 CFR 37.3(a)(1). 5 7 U.S.C. § 2(h)(8).