CFTC Extends and Expands No-Action Relief to Yieldbroker Pty Limited for Failing to Register as an SEF (CFTC Letter 14-139)

The CFTC Division of Market Oversight ("DMO") extended the conditional time-limited relief provided in CFTC No-Action Letter No. 13-76 to the foreign-based trading platform, Yieldbroker Pty Limited ("Yieldbroker").

The extension of no-action relief states that the DMO will not recommend enforcement action by the CFTC against Yieldbroker for failure to register as a swap execution facility under CEA Section 5h(a)(1) ("Swap Execution Facilities") or CFTC Rule 37.3(a)(1) ("Requirements and Procedures for Registration"), or against any market participant who uses or has other relationships with Yieldbroker for the period ending on February 15, 2015.

The relief is contingent upon the six conditions outlined in letter 13-76, which are as follows:

1. Yieldbroker will not offer trading on its platform in any product that is subject to the trade execution mandate, pursuant to CEA Section 2(h)(8);
2. Yieldbroker will only offer trading in Australian dollar-denominated interest rate swaps on its platform;
3. Yieldbroker will maintain its AML license and remain an exchange in good standing with ASIC and other applicable regulators;
4. Yieldbroker must provide impartial access to its platform consistent with the requirements of CFTC Rule 37.202(a) ("Access Requirements") as well as those of any related CFTC guidance;
5. Yieldbroker must at all times maintain an "order book" that complies with CFTC Rule 37.3(a)(3); and
6. Yieldbroker must provide notice to its participants that each swap transaction executed on or pursuant to the rules of its platform during the period of relief provided herein is not occurring on a registered SEF.

Additionally, the DMO authorized Yieldbroker to offer New Zealand Dollar-denominated interest rate swaps during the relief period.

See: CFTC Letter 14-139.
Related news: CFTC Issues No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 13-76) (December 23, 2013); CFTC Extends Conditional No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 14-70) (May 14, 2014); The CFTC Extends Conditional Time-Limited No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 14-105) (August 11, 2014); CFTC Announces Issuance of Swap Relief for Australian Entities (CFTC Letter 14-117) (with Lofchie Video Selection) (September 15, 2014) CFTC Extends Time-Limited No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 13-67) (October 31, 2013); CFTC's DMO Provides Time-Limited No-Action Relief to Australian-Based Trading Platform Yieldbroker Pty Limited (CFTC Letter 13-59) (September 30, 2013).