CFTC Requests Public Comment on ICE Swap Trade Packaged Transaction Rule

Katten Muchin Rosenman LLP
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ICE Swap Trade, LLC, a swap execution facility temporarily registered with the Commodity Futures Trading Commission, recently self-certified amendments to its rules (ICE Rules) to allow market participants to execute “packaged transactions” as block trades. To qualify as a “packaged transaction” under the ICE Rules, a transaction must consist of two or more interrelated components with at least one component subject to the trade execution requirement in Section 2(h)(8) of the Commodity Exchange Act.

The CFTC’s Division of Market Oversight (DMO) issued a stay of ICE’s self-certification on February 26, and the CFTC is now requesting public comments on the rule amendments. Among other things, the CFTC has asked for comments on current market conventions regarding package transactions. The CFTC has also asked for comment on whether package transactions should be subject to the minimum notional or principal amounts required for block trades in Part 43 to the CFTC’s Regulations. Public comments must be submitted by April 23, 2014. 

ICE’s self-certification is available here

More information regarding the CFTC’s request for public comment is available here.

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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