Exemptive Relief

Reporting relief. The Division of Swap Dealer and Intermediary Oversight granted a commodity pool operator’s request for exemptive relief from the annual report requirement in Regulation 4.7(b)(3), so that it could file an annual report for three pools for the period from their inception of trading on November 1, 2013 to December 31, 2014. The CPO submitted waivers from all of the pools’ participants evidencing their consent to the relief requested. (1/23/2014) CFTC Letter No. 14-06. 

Other Developments

ICAP seeks registration as SEF. According to Bloomberg, ICAP Plc has filed with the CFTC an application for registration as a swap execution facility (SEF). ICAP is the first large SEF to seek US approval for an off-shore unit. (1/31/2014) SEF registration. 

Make available to trade determinations. The Division of Market Oversight (DMO) announced that trueEX, LLC’s self-certification of available-to-trade determinations for certain interest rate swap (IRS) contracts is deemed certified. The self-certification includes certain IRS contracts made available to trade via an earlier determination that was deemed certified on January 16, 2014, as well as additional swap contracts. The additional swaps in this determination will become subject to the trade execution requirement under Section 2(h)(8) of the Commodity Exchange Act on February 21, 2014. (1/23/2014) CFTC truEX press release. DMO also announced that TW SEF LLC’s (Tradeweb) self-certification of available-to-trade determinations for certain IRS and credit default swap (CDS) contracts is deemed certified. The self-certification includes certain IRS contracts made available to trade via earlier determinations that were deemed certified on January 16, 2014 and January 22, 2014, respectively; additional IRS contracts; and certain CDS contracts. As a result of this certification, transactions involving certain IRS contracts and CDS contracts will be subject to the trade execution requirement, effective February 26, 2014, in addition to the IRS contracts that will be subject to the trade execution requirement on February 15, 2014 and February 21, 2014, respectively. (1/28/2014) CFTC Tradeweb press release.Finally, DMO announced that MarketAxess SEF Corporation’s (MarketAxess) self-certification of available-to-trade determinations for certain CDS contracts is self-certified. The CDS contracts included in MarketAxess’ MAT Determination are those submitted by Tradeweb. These CDS contracts will become subject to the trade execution requirement on February 26, 2014. (1/30/2014) CFTC MarketAxess press release. 

Committee will discuss cross-border guidance. The Global Markets Advisory Committee will meet on February 12, 2014, to discuss the CFTC staff advisory issued on November 14, 2013, regarding the agency’s cross-border guidance. CFTC press release. 

CFTC roundtable on “package transactions.” The CFTC’s Division of Market Oversight will hold a public roundtable on February 12, 2014, to discuss the application of the Commodity Exchange Act’s trade execution requirement to “package transactions.” The roundtable will discuss the definition of package transactions, whether such transactions pose challenges in clearing or execution that are distinct from those applicable to the clearing or execution of stand-alone swaps subject to the trade execution requirement and potential solutions for trading package transactions on or pursuant to the rules of a derivative clearing member or swap execution facility. CFTC press release. 

Upcoming Technology Advisory Committee meeting. The Technology Advisory Committee will hold its rescheduled public meeting on February 10, 2014. The meeting will focus on issues related to swap data reporting, the CFTC’s concept release on automated trading environments, and swap execution facilities. CFTC press releaseAgenda