CFTC Staff Withdraws Advisory on SEF Registration Requirement

The CFTC Division of Market Oversight withdrew an advisory "in its entirety" after concluding that it had "created regulatory uncertainty regarding whether certain entities ... are required to register as a swap execution facility ("SEF") with respect to their particular functions within the swaps market, as well as the specific attributes of their business models."

The SEF Registration Advisory had been issued "to remind entities of the [SEF] registration requirements" under Section 5h(a)(1) ("SEFs") of the CEA and CFTC Rule 37.3(a)(1) ("Requirements and procedures for registration"). Under the withdrawn CFTC Letter 21-19, the CFTC outlined scenarios that would trigger the registration requirement, including: (i) facilities offering one-to-many or bilateral communications; (ii) entities listing only swaps that are not subject to the trade execution requirement; (iii) facilities offering non-electronic methods of trading; and (iv) entities registered with the CFTC in some other capacity.  

The withdrawal letter did not describe any particular activities as now being clearly outside the scope of the registration requirement.