CFTC Staff Letter 17-55: Extension of No-Action Relief for Package Transactions

The Division of Market Oversight extends no-action relief from the trade execution requirements of Commodity Exchange Act sections 2(h)(8) and 5(d)(9), and Commission regulations 37.3(a)(2) and 37.9, for swaps executed as part of certain package transactions. This relief applies to five categories of transactions, including MAT/New Issuance Bond, MAT/Futures, MAT/Non-MAT Uncleared, MAT/Non-Swap Instruments, and MAT/Non-CFTC Swap Package Transactions, allowing entities, counterparties, SEFs, and DCMs to execute these swaps without complying with specific trade execution mandates. The relief is effective from the date of issuance and expires at 11:59 pm Eastern Time on November 15, 2020.

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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. 17-55
No-Action
October 31, 2017
Division of Market Oversight
Re: Extension of No-Action Relief from Sections 2(h)(8) and 5(d)(9) of the Commodity Exchange Act and from Commission Regulations 37.3(a)(2) and 37.9 for Swaps Executed as
Part of Certain Package Transactions
The Division of Market Oversight (“Division” or “DMO”) of the Commodity Futures Trading Commission (“CFTC” or “Commission”) extends the existing no-action relief, 1 as set forth in CFTC Letter No. 16-76, 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 CFTC Letter No. 16-76 and in Appendix A to this letter, the categories of package transactions for which the Division is extending no-action relief are those where at least one individual swap component is made available to trade (“MAT”) and therefore subject to the CEA section 2(h)(8) trade execution requirement, and where 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

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Timeline

Amended 1 time · last 2020-10-09

2020-10-09CFTCExtension of No-Action Relief for Swaps in Certain Package Transactionsamends

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

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