CFTC Issues Trade Execution Mandate for Additional Interest Rate Swaps

The CFTC Division of Market Oversight ("DMO") certified trueEX, LLC's ("trueEX") self-certification of certain interest rate swap contracts that have been made available-to-trade ("MAT Determinations"). The CFTC stated that swaps subject to MAT Determinations, whether offered by trueEx or any other swap execution facility ("SEF") or designated contract market ("DCM"), will become subject to the trade execution requirement under CEA Section 2(h)(8) ("Jurisdiction of Commission; Liability of Principal for Act of Agent; Commodity Futures Trading Commission; Transaction in Interstate Commerce") 30 days after certification. In the case of these interest rate swap contract MAT Determinations, the requirement will be effective as of February 21, 2014. The CFTC noted that all transactions involving swaps that are subject to the trade execution requirement must be executed through a DCM or SEF, including swaps that are part of so-called "package transactions," or groups of transactions that are executed together for price coordination or other reasons.

See: trueEX MAT Approval and Fixed-to-Floating Interest Rate Swap Table.Related news: CFTC Issues Trade Execution Mandate for Certain Interest Rate Swaps (with Robins Comment and Lofchie Comment) (January 17, 2014).Other related news: MFA Comment Letter to CFTC on SEF Trading Rules and Onboarding Documentation (with Lofchie Comment) (January 9, 2014) MFA Supports More Limited Made-Available-to-Trade Submissions (December 6, 2013); MFA Submits Suggestions to CFTC on MAT Submissions (with Lofchie Comment) (November 25, 2013); SIFMA and ISDA Criticize SEFs' Made-Available-to-Trade Submissions (with Lofchie Comment) (November 21, 2013); CFTC Extends Comment Period on Certification from Javelin SEF to Implement Available-to-Trade Determinations (with Lofchie Comment) (November 1, 2013); SEF Seeks Determination of Mandatory Exchange Trading of Swaps (with Lofchie Comment) (October 18, 2013).