RegAlert2016-03-14 | CFTC Staff Letter 16-25Added · Updated
CFTC Staff Letter 16-25: Extension of No-Action Relief for SEF Confirmation and Recordkeeping Requirements
The Division of Market Oversight extends no-action relief until March 31, 2017, or the effective date of revised regulations, allowing Swap Execution Facilities to incorporate by reference previously-negotiated agreements in confirmations without obtaining copies first. This relief exempts SEFs from maintaining copies of such incorporated agreements under Regulations 37.1000, 37.1001, and 45.2(a), and from reporting confirmation data contained solely within those agreements under Regulation 45.3(a). SEFs must maintain specific rulebook provisions regarding confirmation statements, inconsistency handling, and document availability, while continuing to report all Primary Economic Terms data and other swap data currently reported. The relief applies exclusively to uncleared swap transactions executed on or pursuant to SEF rules and does not excuse compliance with other applicable requirements.
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U.S. COMMODITY FUTURES TRADING COMMISSION
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CFTC Letter 16-25
No-Action
March 14, 2016
Division of Market Oversight
Re: Extension of No-Action Relief for Swap Execution Facility Confirmation and Recordkeeping Requirements under Commodity Futures Trading Commission Regulations 37.6(b), 37.1000, 37.1001, 45.2, and 45.3(a) Dear Mr. Shields:
This letter responds to a request received from the Wholesale Markets Brokers’ Association, Americas (“WMBAA”)1 that the Division of Market Oversight (“Division”) extend the relief provided to its members and other industry participants under Commodity Futures Trading Commission (“CFTC” or “Commission”) Letter No. 15-25. Because the WMBAA and its members have been unable to come up with a solution to meet the confirmation requirements in Commission Regulation 37.6(b), it requests this time to enable the Commission to undertake a rulemaking to establish a permanent SEF confirmation solution for uncleared transactions executed on or pursuant to the rules of a SEF consistent with the terms of the no-action relief. The no-action relief provided under CFTC Letter No. 15-25 will expire on 11:59 p.m. (Eastern Time) March 31, 2016. The Division continues to assess confirmation requirements, including establishing a permanent solution and will thus extend the no-action relief provided under CFTC Letter No.15-25 until the earlier of (1) 11:59 pm (Eastern Time) March 31, 2017 or (2) the effective date of revised Commission regulations that establish a permanent, practicable SEF confirmation solution. Background Commission Regulation 37.6(b) requires that a swap execution facility (“SEF”) “provide each counterparty to a transaction that is entered into on or pursuant to the rules of the [SEF] with a written record of all of the terms of the transaction which shall legally supersede any previous agreement and serve as a confirmation of the transaction.”2 In the adopting release for the final part 37 rules, the Commission explained that, with respect to uncleared swaps, SEFs could satisfy the regulation’s written confirmation requirement by incorporating by reference
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This document amends: CFTC Staff Letter 15-25: Extension of No-Action Relief for SEF Confirmation and Recordkeeping Requirements
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
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