Eurex Clearing's Registration Relief is Extended.
On March 10th, the CFTC's Division of Clearing and Risk ("DCR") extended the time-limited no-action relief to Eurex Clearing AG ("Eurex Clearing") provided in CFTC Letter 13-44. Under the relief, DCR will not recommend enforcement action against (1) Eurex Clearing for failing to register as a derivatives clearing organization ("DCO"), or (2) clearing members of Eurex Clearing that are U.S. persons for failure to clear certain interest rate swaps ("IRS") or certain credit default swaps ("CDS") on a broad-based index of reference entities ("Index CDS") through a registered or exempt DCO. The extended relief will expire at the earlier of December 31, 2014 or the date upon which Eurex Clearing becomes registered as a DCO with respect to its IRS and Index CDS clearing businesses. CFTC Press Release.
Ad Hoc Rulemaking.Other Developments
On March 14th, Risk.net summarized the comments of current and former CFTC Commissioners concerning the CFTC's Dodd-Frank Act rulemaking. Speaking at an industry conference, the Commissioners voiced concern for the ad hoc nature of the no-action letters and interpretations accompanying many of the CFTC's rulemakings. Commissioner Concerns.
Swap Reporting Reform.
On March 13th, Reuters reported that the CFTC will soon issue a proposal to reform swap trading reporting rules. Trade Reporting.Swap Reporting Reform.
On March 10th, the CFTC's Division of Market Oversight announced that Bloomberg SEF LLC's ("Bloomberg") self-certification of available-to-trade determinations ("MAT Determination") for certain contracts are self-certified. This self-certification involves only certain IRS and CDS contracts made available to trade via earlier determinations that were self-certified on January 16, 2014, January 22, 2014 and January 27, 2014, respectively. These determinations became effective on February 15, 2014, February 21, 2014 and February 26, 2014 meaning that the CDS contracts and IRS contracts in this MAT Determination, whether listed or offered by Bloomberg or any other swap execution facility or designated contract market are subject to the trade execution requirement under section 2(h)(8) of the Commodity Exchange Act. CFTC Press Release.Available-to-Trade Determinations.
CFTC Signs Cooperation Agreement with Japan's Regulator.
On March 10th, the CFTC and the Financial Services Agency of Japan signed a Memorandum of Cooperation regarding cooperation and the exchange of information in the supervision and oversight of regulated entities that operate on a cross-border basis in the United States and Japan. CFTC Press Release.CFTC Signs Cooperation Agreement with Japan's Regulator.
CFTC to Host Risk Management Roundtable.
CFTC staff will hold a public roundtable on March 18, 2014 to discuss risk management practices by Commodity Pool Operators. The roundtable will focus on the use of risk management procedures in the operation of various types of commodity pools, including registered investment companies, public commodity pools, private funds, and funds of funds. Discussion will include risk management controls relating to investment risk, operational risk, and compliance or regulatory risk. CFTC Press Release.CFTC to Host Risk Management Roundtable.