Post by bot on Sept 30, 2013 19:16:09 GMT -5
Exemptive, No-Action, & Interpretative Letters for CFTC.gov.
The following letter has been added:
13-55; Parts 43 and 45 of the Commission’s Regulations; No-Action; September 27, 2013
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) today issued an amendment to CFTC No-Action Letter No. 13-55 previously issued by the Division on September 27, 2013 (Letter 13-55). Letter 13-55 provides temporarily registered swap execution facilities (SEFs) with relief from certain swap data reporting requirements of Parts 43 and 45 of the Commission’s Regulations with respect to certain swaps in the equity, foreign exchange (FX) and other commodity asset classes executed on, or pursuant to, the rules of a SEF, and subject to conditions specified in the letter. The relief expires no later than 12:01 a.m. eastern time on October 30, 2013 for swaps executed in the FX asset class, and 12:01 a.m. eastern time on December 2, 2013 for swaps executed in the equities and other commodity asset classes. The amended letter changes three references in the original letter from primary economic terms, or “PET”, data to reference “creation” data.
13-58; 37.6(b); No-Action; September 30, 2013
The Commodity Futures Trading Commission’s (Commission) Division of Market Oversight (Division) issued a letter providing temporarily registered swap execution facilities (SEFs) with relief from the transaction confirmation requirement within Commission regulation 37.6(b) for swaps that are not intended to be submitted for clearing (“Non Cleared Swaps”) and subject to conditions specified in the letter. The relief expires no later than 12:01 a.m. eastern time on October 30, 2013 for Non-Cleared Swaps in the foreign exchange (“FX”), interest rate, and credit asset classes, and no later than 12:01 a.m. eastern time on December 2, 2013 for Non-Cleared Swaps executed in the equity and other commodity asset classes.
13-59; CEA section 5h(a)(1); Commission Regulation 37.3(a)(1); No-Action; September 30, 2013
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today announced the issuance of a no-action letter providing time-limited relief for Australian-based trading platform Yieldbroker Pty Limited (Yieldbroker). DMO will not recommend that the Commission take enforcement action against Yieldbroker for failure to register as a swap execution facility (SEF) under section 5h(a)(1) of the Commodity Exchange Act (Act) or Commission Regulation 37.3(a)(1), or against any market participants for use of, or other relationships with, Yieldbroker, for a 30-day period commencing on October 2, 2013, which is the compliance date for the Commission’s final SEF rules, and expiring on November 1, 2013. Yieldbroker is licensed as an exchange under an Australian Market License (AML) and is regulated by the Australian Securities and Investment Commission (ASIC). Yieldbroker operates a multilateral trading platform in Australia which brings together multiple third-party buying and selling interests in swaps. Yieldbroker currently permits direct access to U.S. persons to transact in swaps on its platform. On September 27, 2013, Yieldbroker provided DMO with a confidential draft SEF application, which DMO is in the process of reviewing. Yieldbroker, DMO and ASIC staff are engaged in discussions regarding an arrangement whereby Yieldbroker would register with the Commission as a SEF while maintaining its AML. Such an arrangement would include Yieldbroker’s provision of an order book, a sufficient level of pre- and post-trade price transparency, non-discriminatory access by market participants, and an appropriate level of self-regulatory oversight. In addition, Commission staff and ASIC staff are developing an arrangement that provides for information sharing and other cooperation with respect to Yieldbroker.
13-60; Commission regulation 40.2(a)(2); No-Action; September 30, 2013
The Division of Market Oversight (DMO) granted time-limited no-action relief for swap execution facilities (SEFs) and Designated Contract Markets (DCMs) from the one business day product review period requirement of Commission regulation 40.2(a)(2) for newly-listed swap products. The time limited no-action relief would commence on September 30, 2013 and expire on October 3, 2013 or, if there is a federal government shutdown on that date, the first business day after the conclusion of such shutdown.
13-61; Commission Regulation 1.3(ggg); No-Action; September 30, 2013
The Division of Swap Dealer and Intermediary Oversight issued a time-limited no-action letter that provides relief for persons engaging in floor trader activities. The relief expires on November 1, 2013. During that limited time period, DSIO will not recommend that the Commission take an enforcement action against an entity for failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4), a swap that is submitted for clearing to a registered derivatives clearing organization, provided that: (1) the entity does not have a registered swap dealer affiliate; (2) the entity entered into the swap using proprietary funds for its own account; and (3) the entity complies with the requirements set forth in Commission Regulations 1.3(ggg)(6)(iv)(D)-(H). The letter extends the time-limited relief previously provided by DSIO in CFTC Letter No. 13-37, which was issued on June 27, 2013, and in CFTC Letter No. 12-60, which was issued on December 19, 2012.
13-62; Rules 1.73(a)(2)(i)-(ii), 37.702(b); No-Action; September 30, 2013
Additionally, in order for a SEF to avail itself of the no-action relief, the SEF must submit to the Commission by October 10, 2013:
(1) Pursuant to Commission Regulation 40.6, any rule amendments that are necessary for full compliance with Commission Regulation 37.702(b), and any rule amendments that are necessary to facilitate full compliance with Commission Regulation 1.73(a)(2)(i) and (a)
(2)(ii), in accordance with the guidance issued by the Divisions on September 26, 2013 (Staff Guidance); and (2) A written representation that the SEF is undertaking all steps necessary to fully comply with Commission Regulation 37.702(b), and is undertaking all steps necessary to facilitate full compliance with Commission Regulation 1.73(a)(2)(i) and (a)(2)(ii), in accordance with the Staff Guidance.
The following letter has been added:
13-55; Parts 43 and 45 of the Commission’s Regulations; No-Action; September 27, 2013
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) today issued an amendment to CFTC No-Action Letter No. 13-55 previously issued by the Division on September 27, 2013 (Letter 13-55). Letter 13-55 provides temporarily registered swap execution facilities (SEFs) with relief from certain swap data reporting requirements of Parts 43 and 45 of the Commission’s Regulations with respect to certain swaps in the equity, foreign exchange (FX) and other commodity asset classes executed on, or pursuant to, the rules of a SEF, and subject to conditions specified in the letter. The relief expires no later than 12:01 a.m. eastern time on October 30, 2013 for swaps executed in the FX asset class, and 12:01 a.m. eastern time on December 2, 2013 for swaps executed in the equities and other commodity asset classes. The amended letter changes three references in the original letter from primary economic terms, or “PET”, data to reference “creation” data.
13-58; 37.6(b); No-Action; September 30, 2013
The Commodity Futures Trading Commission’s (Commission) Division of Market Oversight (Division) issued a letter providing temporarily registered swap execution facilities (SEFs) with relief from the transaction confirmation requirement within Commission regulation 37.6(b) for swaps that are not intended to be submitted for clearing (“Non Cleared Swaps”) and subject to conditions specified in the letter. The relief expires no later than 12:01 a.m. eastern time on October 30, 2013 for Non-Cleared Swaps in the foreign exchange (“FX”), interest rate, and credit asset classes, and no later than 12:01 a.m. eastern time on December 2, 2013 for Non-Cleared Swaps executed in the equity and other commodity asset classes.
13-59; CEA section 5h(a)(1); Commission Regulation 37.3(a)(1); No-Action; September 30, 2013
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today announced the issuance of a no-action letter providing time-limited relief for Australian-based trading platform Yieldbroker Pty Limited (Yieldbroker). DMO will not recommend that the Commission take enforcement action against Yieldbroker for failure to register as a swap execution facility (SEF) under section 5h(a)(1) of the Commodity Exchange Act (Act) or Commission Regulation 37.3(a)(1), or against any market participants for use of, or other relationships with, Yieldbroker, for a 30-day period commencing on October 2, 2013, which is the compliance date for the Commission’s final SEF rules, and expiring on November 1, 2013. Yieldbroker is licensed as an exchange under an Australian Market License (AML) and is regulated by the Australian Securities and Investment Commission (ASIC). Yieldbroker operates a multilateral trading platform in Australia which brings together multiple third-party buying and selling interests in swaps. Yieldbroker currently permits direct access to U.S. persons to transact in swaps on its platform. On September 27, 2013, Yieldbroker provided DMO with a confidential draft SEF application, which DMO is in the process of reviewing. Yieldbroker, DMO and ASIC staff are engaged in discussions regarding an arrangement whereby Yieldbroker would register with the Commission as a SEF while maintaining its AML. Such an arrangement would include Yieldbroker’s provision of an order book, a sufficient level of pre- and post-trade price transparency, non-discriminatory access by market participants, and an appropriate level of self-regulatory oversight. In addition, Commission staff and ASIC staff are developing an arrangement that provides for information sharing and other cooperation with respect to Yieldbroker.
13-60; Commission regulation 40.2(a)(2); No-Action; September 30, 2013
The Division of Market Oversight (DMO) granted time-limited no-action relief for swap execution facilities (SEFs) and Designated Contract Markets (DCMs) from the one business day product review period requirement of Commission regulation 40.2(a)(2) for newly-listed swap products. The time limited no-action relief would commence on September 30, 2013 and expire on October 3, 2013 or, if there is a federal government shutdown on that date, the first business day after the conclusion of such shutdown.
13-61; Commission Regulation 1.3(ggg); No-Action; September 30, 2013
The Division of Swap Dealer and Intermediary Oversight issued a time-limited no-action letter that provides relief for persons engaging in floor trader activities. The relief expires on November 1, 2013. During that limited time period, DSIO will not recommend that the Commission take an enforcement action against an entity for failure to include, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity for purposes of Commission Regulation 1.3(ggg)(4), a swap that is submitted for clearing to a registered derivatives clearing organization, provided that: (1) the entity does not have a registered swap dealer affiliate; (2) the entity entered into the swap using proprietary funds for its own account; and (3) the entity complies with the requirements set forth in Commission Regulations 1.3(ggg)(6)(iv)(D)-(H). The letter extends the time-limited relief previously provided by DSIO in CFTC Letter No. 13-37, which was issued on June 27, 2013, and in CFTC Letter No. 12-60, which was issued on December 19, 2012.
13-62; Rules 1.73(a)(2)(i)-(ii), 37.702(b); No-Action; September 30, 2013
Additionally, in order for a SEF to avail itself of the no-action relief, the SEF must submit to the Commission by October 10, 2013:
(1) Pursuant to Commission Regulation 40.6, any rule amendments that are necessary for full compliance with Commission Regulation 37.702(b), and any rule amendments that are necessary to facilitate full compliance with Commission Regulation 1.73(a)(2)(i) and (a)
(2)(ii), in accordance with the guidance issued by the Divisions on September 26, 2013 (Staff Guidance); and (2) A written representation that the SEF is undertaking all steps necessary to fully comply with Commission Regulation 37.702(b), and is undertaking all steps necessary to facilitate full compliance with Commission Regulation 1.73(a)(2)(i) and (a)(2)(ii), in accordance with the Staff Guidance.
