RegAlert2018-12-20 | CFTC Staff Letter 18-32Added · Updated
CFTC Staff Letter 18-32: No-Action Relief for Eurex Clearing AG to Modify Acknowledgment Letter with Deutsche Bundesbank
The Division of Clearing and Risk grants Eurex Clearing AG no-action relief to execute and submit a Modified Bundesbank Acknowledgment Letter in place of the standard Template or Original versions required under Regulation 22.5. This modification permits the Bundesbank to provide greater specificity regarding account balances, applicable account numbers, and transaction details, including amounts, dates, times, and authorizations, upon request by designated CFTC directors. The relief is contingent upon the continued validity of the 2016 EC-CFTC Agreement and may be rescinded if EU legal and supervisory requirements for U.S. DCOs change materially, with adequate notice provided for an orderly transition.
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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5430
Facsimile: (202) 418-5547
Division of Clearing and Risk
CFTC Letter No. 18-32
No-Action
December 20, 2018
Division of Clearing and Risk
Heike Eckert, Chief Operating Officer
Oliver Haderup, Chief Compliance Officer
Eurex Clearing AG
Mergenthalerallee 61
65760 Eschborn, Germany
December 20, 2018
RE: Request of Eurex Clearing AG for modification of relief granted under CFTC Letter No. 16-05 Dear Ms. Eckert and Mr. Haderup:
This is in response to your letter dated June 27, 2018 (“Letter”), to the Division of Clearing and Risk (“Division”) of the Commodity Futures Trading Commission (the “Commission”). In the Letter, you request that the Division modify the conditions of relief granted in CFTC Letter No. 16-05.1 Letter No. 16-05 granted relief to Eurex Clearing AG (“Eurex Clearing”) permitting it to obtain from Deutsche Bundesbank (“Bundesbank”), and provide the Commission with, an executed version of the acknowledgment letter as required under Regulation 22.5, in a form other than the standard form (“Template Acknowledgment Letter”) set forth in Appendix B to Regulation 1.20. You have represented that the Bundesbank has requested further modifications to the acknowledgment letter, and have requested that the Division modify the conditions of relief granted in Letter No. 16-05 accordingly.
I. Background
Regulation 22.5 requires, among other things, that a derivatives clearing organization (“DCO”) obtain an acknowledgment letter from each depository with which the DCO deposits cleared swaps customer funds.2 Specifically, Regulation 22.5(a) provides that, before depositing cleared swaps customer funds with a depository, a DCO must obtain and retain in its files a 1 CFTC Letter No. 16-05 (Feb. 1, 2016). 2 See Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations, 78 Fed. Reg. 68,506 (Nov. 14, 2013).
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Lineage: In force
Timeline
This document amends: CFTC Staff Letter 16-05: No-Action Relief and Exemption for Eurex Clearing AG
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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