Final rules on system safeguards testing requirements. The CFTC adopted a final rule amending its current system safeguards rules for designated contract markets, swap execution facilities, and swap data repositories, by enhancing and clarifying current provisions relating to system safeguards risk analysis and oversight and cybersecurity testing, and adding new provisions concerning certain aspects of cybersecurity testing. The CFTC also adopted enhanced requirementsfor testing by a derivatives clearing organization of its system safeguards, as well as additional amendments to reorder and renumber certain paragraphs within the regulations and make other minor changes to improve the clarity of the rule text. (9/19/2016)
Yieldbroker qualifies for first-of-its-kind no-action relief. The CFTC announced that its Divisions of Market Oversight and Swap and Intermediary Oversight have stated that Yieldbroker, a multilateral swaps trading facility that is licensed and regulated in Australia, has qualified for no-action relief in connection with CFTC No-Action Letter No. 15-29. This makes Yieldbroker the first foreign-regulated, multilateral swap trading facility that permits direct access to US persons to qualify for long-term no-action relief from the requirement to register as a swap execution facility with the CFTC. (9/14/2016) No-Action Letter No. 16-72.
CFTC approves final rules for system safeguards resting requirements and comparability determination for Japan uncleared swap margin rules for substituted compliance. The CFTC announced that it approved final rules for system safeguards testing requirements for designated contract markets, swap execution facilities, swap data repositories, and derivatives clearing organizations. In addition, the CFTC approved a comparability determination that would allow substituted compliance with certain of Japan’s margin requirements for uncleared swaps as compared to the uncleared swap margin provisions of Title VII of Dodd-Frank and CFTC regulations. (9/8/2016)
CFTC signs MOU with two Mexican authorities to enhance supervision of cross-border regulated entities. The CFTC announced that CFTC Chair Timothy Massad signed an MOU with the Comisión Nacional Bancaria y de Valores and the Banco de México regarding cooperation and the exchange of information in the supervision and oversight of certain regulated entities that operate on a cross-border basis in the US and Mexico. The scope of the MOU includes central counterparties and trade repositories. (9/6/2016)