Swap Execution Facilities

CFTC and MAS Mutually Recognize Certain Derivatives Trading Venues in the U.S. and Singapore


On March 13, the Commodity Futures Trading Commission (CFTC) issued an order exempting certain derivatives trading facilities regulated by the Monetary Authority of Singapore (MAS) from the requirement to register with the CFTC as swap execution facilities (SEFs), and MAS announced the issuance of regulations exempting certain derivatives trading venues regulated by the CFTC from the requirement to be a MAS-authorized approved exchange (AE) or recognized market operator (RMO) before establishing or operating an organized market. Press Release. CFTC Order of Exemption. MAS Order of Exemption.

CFTC Extends No-Action Relief to SEFs and DCMs From Certain CFTC Regulations for Correction of Errors


On May 30, 2017, the U.S. Commodity Futures Trading Commission‘s (“CFTC“) Division of Market Oversight and Division of Clearing and Risk issued a no-action letter extending the relief provided in CFTC Letter No. 16-58, which expires on June 15, 2017. That no-action letter provides relief from certain CFTC regulations to permit swap execution facilities (“SEFs“) and designated contract markets (“DCMs“) to correct clerical or operational errors that caused a swap to be rejected for clearing and thus become void. The no-action letter also permits SEFs and DCMs to correct clerical or operational errors discovered after a swap has been cleared. The letter extends the relief until the effective date of any revised CFTC regulations regarding methods of execution requirements and pre-arranged trading. Release. Full Letter.

CFTC Extends No-Action Relief for Swap Execution Facilities from Certain “Block Trade” Requirements

On October 7, 2016, the U.S. Commodity Futures Trading Commission (“CFTC“) Division of Market Oversight extended time-limited no-action relief for swap execution facilities from the “occurs away” requirement from the definition of “block trade” under CFTC Regulation Section 43.2. Relief is extended until November 15, 2017. Press Release. No Action Letter.

CFTC and EC Statement on Regulatory Framework

On February 12, the CFTC and the European Commission announced jointly that the two agencies have made significant progress in their collaboration on the regulatory frameworks for CFTC-regulated swap execution facilities (SEFs) and EU-regulated multilateral trading facilities (MTFs).  Joint Release.

CFTC Proposed Rule on Designated Contract Markets and Swap Execution Facilities

On December 5, the CFTC proposed regulations in accordance with Section 723(a)(8) of the Dodd-Frank Act that would establish a process for Designated Contract Markets and Swap Execution Facilities to make a swap “available to trade”. Comments must be submitted within 60 days of publication in the Federal Register. CFTC Fact Sheet. CFTC Q&A. Proposed Rule.

CFTC Proposed Rules to Adapt CFTC Regulations to New Commodity Exchange Act Definitions

On April 27, in accordance with Sections 721 and 733 of the Dodd-Frank Act, the CFTC proposed rules to revise its regulations to reflect: (i) amendments to the definitions of “futures commission merchant” and “introducing broker” in the Commodity Exchange Act and (ii) the creation of swap execution facilities as trading platforms for swaps. CFTC Fact Sheet. CFTC Proposed Rule.

SEC, CFTC to Hold Roundtables on Swaps and the Dodd-Frank Act

On September 8, the SEC and CFTC announced plans to hold two joint public roundtables on issues relating to the implementation of the Dodd-Frank Act.  The first roundtable on September 14 will, among other things, focus on issues related to swap data repository registration, and models for real time public reporting.  The second roundtable on September 15 will focus on issues relating to swap execution facilities and security-based swap execution facilitates.  The discussions will be open to the public. SEC Release.