CFTC Staff Letter 14-60: Time-Limited No-Action Relief for SEF and DCM Members from Recording Oral Communications

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Division of Swap Dealer and
Intermediary Oversight
Division of
Market Oversight
Gary Barnett
Director
Vincent A. McGonagle
Director
CFTC Letter No. 14-60
No-Action
April 25, 2014
Division of Swap Dealer and Intermediary Oversight Division of Market Oversight Timothy W. Cameron, Esq. Matthew J. Nevins, Esq. Securities Industry and Financial Markets Association 120 Broadway, 35th Floor New York, NY 10271 Re: Time-Limited No-Action Relief for Certain Members of Swap Execution Facilities and Designated Contract Markets from the Requirement to Record Oral Communications, Pursuant to Commission Regulation 1.35(a), in Connection with the Execution of Swap Transactions Dear Messrs. Cameron and Nevins:
This letter is in response to a letter dated April 17, 2014, received by the Division of Swap Dealer and Intermediary Oversight (“DSIO”) and the Division of Market Oversight (“DMO”) (collectively the “Divisions”) of the Commodity Futures Trading Commission (“Commission”) from the Asset Management Group of the Securities Industry and Financial Markets Association (“SIFMA”). In the letter, SIFMA seeks relief from the recordkeeping requirements of Commission Regulation (“Regulation”) 1.35(a), with respect to oral communications, to the extent that such requirements apply to Asset Managers1 that are members of a swap execution facility (“SEF”) or a designated contract market (“DCM”) in connection with the execution of swaps. 2 1 While “Asset Manager” is not a registration category or defined term under the Commodity Exchange Act or the regulations promulgated pursuant thereto, SIFMA has defined the term broadly for purposes of the request for no￾action relief to include certain persons who are required to register with the Commission (commodity pool operators and commodity trading advisors) as well as certain persons who are not required to register with the Commission. 2 Although SIFMA also requested relief from the written recordkeeping requirements of the Regulation, the Divisions find it appropriate, in this letter, to address the request for relief solely with respect to oral communications.