Regulatory Relief

CPO Relief from Independent Auditor Requirements

On May 2nd, the Commodity Futures Trading Commission (“CFTC”) made public four exemptive letters granting commodity pool operators relief from rules requiring independently audited financial statements. CFTC Letter No. 14-63CFTC Letter No. 14-64CFTC Letter No. 14-65CFTC Letter No. 14-66.

Phased Timeline for Packaged Trades Announced.

On May 1st, the Divisions of Market Oversight and Clearing and Risk announced that beginning May 16, 2014, market participants executing swaps subject to the trade execution requirement that are part of a so-called “package transaction” must be traded on a swap execution facility (“SEF”) or designated contract market (“DCM”), pursuant to a phased compliance timeline. The announcement, made in a no-action letter, provides a phased compliance timeline for package transactions which include at least one swap that has been made available to trade and is therefore subject to the trade execution requirement. CFTC Press Release.

Relief from Oral Recording Requirement

On April 25th, The Division of Market Oversight and Division of Swap Dealer and Intermediary Oversight provided relief to commodity trading advisors that are members of designated contract markets or swap execution facilities from the oral recording requirement of Commission Regulation 1.35(a), in connection with the execution of swaps. The relief expires on December 31, 2014. CFTC Letter No. 14-60.

Other Developments

Crossing Borders

On April 29th, Bloomberg reported the CFTC has been meeting with other national and international regulators to discuss the oversight of cross border derivatives transactions. Crossing Borders.