CFTC Exempts Singapore RMOs from SEF Registration
Commentary by Mark Highman
The CFTC issued an Order to exempt two recognized market operators ("RMOs") authorized within Singapore from CFTC swap execution facility ("SEF") registration requirements.
In connection with a March 2019 Order, the CFTC determined that the two RMOS, FMX Securities (Singapore) Pte. Limited and LMAX Pte. Ltd., satisfy the CEA standard for granting an SEF registration exemption.
In the March 2019 Order, the CFTC determined that the Monetary Authority of Singapore ("MAS") regulatory framework for RMOs satisfied the standard in CEA Section 5h(g) ("Swap Execution Facilities") to exempt a SEF from registration with the CFTC. Under that Order, MAS was empowered, on an ongoing basis, to request such exemption for facilities meeting legal requirements within Singapore. MAS also agreed to notify the CFTC when an RMO no longer satisfies these requirements.
Commentary
This is the third amendment to the CFTC's SEF Exemption Order issued to the Monetary Authority of Singapore and brings the total number of exempt Singapore SEFs to 18. A list of the exempt Singapore SEFs is available here.