On September 15, 2014, the US Commodity Futures Trading Commission’s  (“CFTC”) Divisions of Swap Dealer and Intermediary Oversight (“DSIO”) and  Market Oversight (“DMO”) issued an enabling no-action letter for qualifying  swaps trading platforms that are licensed in Australia and overseen by the  Australian Securities & Investments Commission (“Australian Licensed  Markets”). The enabling no-action letter provides relief for (i) qualifying swaps  trading platforms from the swap execution facility registration requirement under  section 5h(a)(1) of the Commodity Exchange Act (“CEA”); (ii) parties executing  swap transactions on qualifying Australian Licensed Markets from the trade  execution requirements under CEA section 2(h)(8); and (iii) swap dealers and  major swap participants executing swap transactions on qualifying Australian  Licensed Markets from certain requirements under the CFTC’s business conduct  rules.

The no-action letter requires that an Australian Licensed Market must issue an  undertaking that it will comply with the conditions in the letter. Relief will begin  after the CFTC’s DMO reviews the certification and issues a responsive relief  letter. 

The conditional no-action letter will expire upon the effective date of any final  rules implementing the CFTC’s authority to exempt facilities that contain systems  of comparable, comprehensive supervision and regulation by appropriate  governmental authorities in the home country of the facility. 

The full text of the CFTC enabling no-action letter is available at: 

http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14- 117.pdf