CFTC Extends Brexit-Related Relief to UK Entities

CFTC staff extended previously granted relief related to swap execution facilities ("SEFs") in connection with the United Kingdom's withdrawal from the European Union.

New CFTC Letter 21-17 extends previously granted relief under CFTC Letter 20-39 which provided relief (1) from SEF registration for certain trading facilities authorized in the United Kingdom and specified in a CFTC Exemptive Order, and (2) for market participants, from the trade execution requirement in CEA Section 2(h)(8) as to swaps executed on such facilities. The new CFTC staff letter extends the previously granted to relief to four additional facilities listed in Appendix A to the letter.

The relief will expire on the earlier of (i) the effective date of an exemptive order issued under Section 5h(g) of the CEA or (ii) December 31, 2021.