RegAlert2017-03-24 | CFTC Staff Letter 17-17Added · Updated
CFTC Staff Letter 17-17 (No-Action): Extension of Relief for SEF Confirmation and Recordkeeping Requirements
The Division of Market Oversight extends no-action relief from Commission Regulations 37.6(b), 37.1000, 37.1001, 45.2, and 45.3(a) for Swap Execution Facilities until the effective date of revised regulations establishing a permanent confirmation solution. This extension permits SEFs to incorporate by reference terms from previously-negotiated agreements in confirmations without obtaining copies first, and exempts them from maintaining those copies or reporting confirmation data contained solely within such incorporated agreements. The relief applies only to uncleared swap transactions and requires SEFs to maintain specific rulebook provisions regarding confirmation language, document availability upon request, and continued reporting of all Primary Economic Terms data.
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U.S. COMMODITY FUTURES TRADING COMMISSION
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CFTC Letter 17-17
No-Action
March 24, 2017
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. 16-25.2 Because the WMBAA and its members have been unable to develop 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 swap execution facility (“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 requested by the WMBAA. The no-action relief provided under CFTC Letter No. 16-25 will expire on 11:59 p.m. (Eastern Time) March 31, 2017. 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.16-25 until the effective date of revised Commission regulations that establish a permanent, practicable SEF confirmation solution. Background Commission Regulation 37.6(b) requires that a 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.”3 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 terms set forth in agreements
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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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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.