CFTC DMO Grants Relief ahead of ICE Clear Europe's Discontinuation of CDS Clearing Services

The CFTC Division of Market Oversight ("DMO") granted no-action relief as to swap trade execution requirements related to ICE Clear Europe Ltd. ("ICEU") discontinuing CDS clearing services in October 2023.

The relief was requested by ISDA to permit migration of CDS positions of ICEU to other clearinghouses without being required to comply with the platform execution requirements pursuant to CEA Section 2(h)(8). In particular, the letter provides no-action relief for:

• compliance with the trade execution requirement under CEA Section 2(h)(8) for any CDS transactions that are entered into with the sole purpose of migrating CDS positions away from ICEU and to another CCP; and
• the required methods of execution under CFTC Rule 37.9 for any CDS transactions that are entered into with the sole purpose of migrating CDS position away from ICEU and to another CCP.

The no-action position will expire on the later of (i) October 27, 2023 or (ii) ICEU’s cessation of its CDS clearing services, but no later than January 1, 2024.