CFTC Staff Letter 16-76: Extension of No-Action Relief for Package Transactions

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. 16-76
No-Action
November 1, 2016
Division of Market Oversight
Re: Extension of No-Action Relief from the Commodity Exchange Act Sections 2(h)(8) and 5(d)(9) and from Commission Regulation § 37.9 and No-Action Relief for Swap Execution Facilities from Commission Regulation § 37.3(a)(2) for Swaps Executed as Part of Certain Package Transactions The Division of Market Oversight (“Division” or “DMO”) of the Commodity Futures Trading Commission (“Commission”) herein extends the existing no-action relief, 1 as set forth in CFTC Letter 15-55 (“NAL 15-55”), from requirements in sections 2(h)(8) and 5(d)(9) of the Commodity Exchange Act (“CEA” or “Act”) and from requirements in Commission Regulations § 37.3(a)(2) and § 37.9 for swaps executed as part of certain package transactions. 2 As set forth in NAL 15-55 and also displayed in Appendix A to this letter, the categories of package transactions for which the Division is extending no-action relief are those in which at least one individual swap component is made available to trade (“MAT”) and therefore subject to the trade execution requirement; and one of the following applies: (1) at least one individual component is a bond issued and sold in the primary market (“MAT/New Issuance Bond Package Transactions”); 3 (2) all other components are contracts for the purchase or sale of a commodity for