On July 11th, the CFTC issued four no-action letters implementing the understanding reached by the E.U. and CFTC regarding the treatment of cross-border swaps transactions. See Joint Press Release.

  • Two of the letters were issued by the Division of Clearing and Risk to two European-based clearing organizations to facilitate their respective provision of certain clearing services to clearing members that are U.S. persons, during the pendency of their derivatives clearing organization registration applications. The letters were issued to LCH.Clearnet SA, CFTC Letter No. 13-43, and Eurex Clearing AG, CFTC Letter No. 13-44.
  • A third no-action letter was issued by the CFTC's Division of Swap Dealer and Intermediary Oversight. It provided relief from certain designated risk mitigation requirements applicable to registered swap dealers and major swap participants organized or established in the U.S. or E.U. with respect to certain transactions, when such transactions are subject to both Section 4s of the Commodity Exchange Act and Article 11 of the European Market Infrastructure Regulation. CFTC Letter No. 13-45.
  • The fourth letter was issued by the Division of Market Oversight. This letter expands the relief previously provided under the terms of the 16 existing direct access no-action letters issued by CFTC staff. Pursuant to the previous no-action letters, a foreign board of trade ("FBOT") may permit identified members or other participants located in the United States to enter trades directly into the trade matching system of the FBOT only with respect to futures and option contracts. Under the terms of the no-action letter issued today, DMO amended the previous no-action letters to permit those FBOTs to list swap contracts for trading by direct access, subject to certain conditions that are enumerated in the letter. CFTC Letter No. 13-46.

See also CFTC Press Release.