CFTC Staff Letter 19-09: Extension of Regulatory Relief to UK Entities Following Brexit

CFTC Letter No. 19-09 No-Action April 05, 2019

April 5, 2019
Re: Extension to UK Entities of Regulatory Relief Previously Granted to European Union Entities in CFTC No-Action Letters: 12-70, 13-45, 17-64, 17-66, and 17-67
I. Introduction
This letter extends to United Kingdom (“UK”) entities existing regulatory relief involving European Union (“EU”) entities issued by staff of the Commodity Futures Trading Commission (“CFTC” or “Commission”). Such extension of relief will become effective if and when the UK withdraws from the EU, commonly referred to as “Brexit.” As of the date of this letter, it is anticipated that such withdrawal may occur on April 12, 2019. The Division of Market Oversight (“DMO”), the Division of Clearing and Risk (“DCR”), and the Division of Swap Dealer and Intermediary Oversight (“DSIO”) (together, the “Divisions”) are issuing this letter jointly to permit UK entities to rely on the longstanding relief involving EU entities set forth in the following letters (collectively, the “Existing Relief”), subject to the conditions and circumstances described therein:

1. Letter 12-70: Relief for Certain Swap Dealers, De Minimis Dealers, Agent Affiliates, and
   Associated Persons from Registration as an Introducing Broker under Section 4d or a Commodity Trading Advisor under Section 4m of the Commodity Exchange Act, and Interpretation that Certain Employees of De Minimis Dealers are not an Introducing Broker as defined in Section 1a(31) of the Commodity Exchange Act; 1
2. Letter 13-45: No-Action Relief for Registered Swap Dealers and Major Swap
   Participants from Certain Requirements under Subpart I of Part 23 of Commission Regulations in Connection with Uncleared Swaps Subject to Risk Mitigation Techniques under EMIR; 2