The Division of Market Oversight of the Commodity Futures Trading Commission has issued temporary no-action relief to swap execution facilities (SEFs) from certain audit trail requirements related to post-trade allocations. Under CFTC Regulation 37.205, SEFs are required to maintain audit trail data sufficient to track an order from the time of receipt through fill, allocation or other disposition. SEFs also are required to maintain a transaction history database that can identify each account to which fills are allocated.
The no-action relief provides that SEFs are not required to capture post-trade allocations in their audit trail data or conduct audit trail reviews of post-trade allocations, subject to the following conditions:
- a SEF seeking relief must adopt a rule that requires market participants to provide post-trade allocation information to the SEF upon request; and
- the SEF must obtain and review post-trade allocation information as part of an investigation into any trading activity involving post-trade allocations.
This relief will expire on November 15, 2017.
The no-action letter is available here.