CFTC Extends Expiration of MTF Relief


On February 12, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) issued relief from registration as a swap execution facility (SEF) to multilateral trading facilities (MTFs) regulated within the European Union. To qualify for such relief, an MTF was required to submit a request to DMO that satisfied the conditions set forth in CFTC Letter No. 14-16. DMO simultaneously issued CFTC Letter No. 14-15, which provided temporary no-action relief to such an MTF until the earlier of March 24, 2014, or DMO’s issuance of a letter granting the MTF’s relief request pursuant to CFTC Letter No. 14-16. A Katten Client Advisory covering CFTC Letters Nos. 14-15 and 14-16 is available here.

DMO has now issued CFTC Letter No. 14-31, which provides that DMO and the Division of Swap Dealer and Intermediary Oversight intend to issue yet another no-action letter to supersede and replace No-Action Letter 14-16. (As of March 21, no MTF had submitted a formal relief request to DMO pursuant to CFTC Letter No. 14-16.) The replacement no-action letter will provide similar long-term relief to MTFs, but will contain certain clarifications and other amendments. In the interim, CFTC Letter No. 14-31 extends temporary no-action relief from SEF registration to an MTF until the earlier of May 14, 2014, or DMO’s issuance of a letter granting an MTF’s relief request pursuant to the replacement no-action letter. 

CFTC Letter No. 14-31 is available here.

Topics:  CFTC, EU, MTFs, Swap Execution Facilities, Swaps

Published In: Finance & Banking Updates, International Trade Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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