No-Action Relief for Singapore Exchange Derivatives Clearing Limited Regarding Section 5b(a) and Section 4d(f) of the Commodity Exchange Act

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 Clearing and
Risk
CFTC Letter No. 12-63
No-Action
Division of Clearing and Risk
Director
Singapore Exchange Derivatives Clearing Limited 2 Shenton Way, #19-00 SGX Centre 1 Singapore 068804 Re: No-Action Relief with Regard to Section 5b(a) and Section 4d(f) of the Commodity Exchange Act Dear Mr. Ramaswami:
This is in response to your letter dated December 21, 2012 (“Letter”) to the Division of Clearing and Risk (“Division”) of the Commodity Futures Trading Commission (“Commission”). In the Letter you request that the Division confirm that it will not recommend that the Commission take enforcement action against (1) Singapore Exchange Derivatives Clearing Limited (“SGX-DC”) for failing to register as a derivatives clearing organization (“DCO”) under section 5b(a) of the Commodity Exchange Act (“CEA”) 1 or (2) SGX-DC’s clearing members (“Clearing Members”) for failing to register as futures commission merchants (“FCMs”) under section 4d(f)(1) of the CEA, in relation to the clearing and carrying of existing or new positions in certain swaps identified in Appendix A of the Letter (“OTC Commodity Contracts”) 3 entered into by certain U.S. customers (“Affected U.S. Persons”). 4 You have requested that such relief be effective until the registration of SGX-DC as a DCO and the transfer of all positions in OTC Commodity Contracts cleared for Affected U.S. Persons to an FCM that is also a Clearing Member of SGX-DC.