CFTC Staff Issues Time-Limited No-Action Letter on the Applicability of Oral Recording Requirements for Certain Members of DCMs or SEFs (CFTC Letter 14-60) (with Lofchie Comment)

The CFTC Division of Swap Dealer and Intermediary Oversight and the Division of Market Oversight (the "Divisions") issued a time-limited no-action letter (expiring on December 31, 2014). In connection to execution of swaps, the no-action letter provides relief to commodity trading advisors that are members of designated contract markets ("DCMs") or swap execution facilities ("SEFs") for certain oral recording requirements set forth in CFTC Rule 1.35(a) ("Records of Commodity, Interest and Related Cash or Forward Transactions").

The letter extends no-action relief that previously was granted by the Divisions in CFTC Letter Nos. 13-77and 14-33.

Lofchie Comment:The CFTC is now issuing no-action letters at a pace that would top 140 for the entire year, a rate that would seem to reflect that much of its prior rulemaking was ill-considered upon adoption.

See: CFTC Letter 14-60.