Final Rules

Federal Register: Whistleblower Awards Process. The Federal Register published the CFTC’s final rule amending its regulations and forms to enhance the process for reviewing whistleblower claims and to make related changes to clarify staff authority to administer the whistleblower program. The CFTC also is making appropriate rule amendments to implement its reinterpretation of the agency’s anti-retaliation authority. This final rule is effective July 31, 2017. (5/30/2017)

Federal Register: Recordkeeping. The Federal Register published the CFTC’s final rule amending recordkeeping obligations set forth in its regulations along with corresponding technical changes to certain provisions regarding retention of oral communications and record retention requirements applicable to swap dealers and major swap participants. The amendments modernize and make technology neutral the form and manner in which regulatory records must be kept, as well as rationalize the rule text for ease of understanding for those persons required to keep records pursuant to the CEA. The effective date for this final rule is August 28, 2017. (5/30/2017) Press release

No-Action Relief

Extension of no-action relief for SEFs and DCMs in connection with swaps with operational or clerical errors. The Division of Market Oversight and the Division of Clearing and Risk responded to a no-action relief extension request from the Wholesale Markets Brokers’ Association, Americas (WMBAA). The WMBAA contended that, despite swap execution facility efforts to continue to work on solutions to reduce operational and clerical errors, market participants continue to encounter circumstances in which a trade is rejected from clearing due to a readily correctible clerical or operational error. The Divisions determined that they will not recommend that the CFTC take any enforcement action against an SEF or designated contract market if, after a trade has been rejected for clearing, the SEF or DCM permits a new trade to be submitted for clearing without having been executed. (5/30/2017) CFTC press release

Other Developments

MRAC meeting. The CFTC’s Market Risk Advisory Committee announced that it will hold a public meeting on June 20, 2017 at the CFTC’s Washington, D.C., headquarters. At this meeting, the MRAC will respond to a presentation by the CFTC’s Division of Clearing and Risk on how it conducts risk surveillance of CCPs; discuss how to better inform the CCP regulatory framework through academic research and economic analysis; and advise the agency of the potential effects of Brexit on financial markets.