CFTC Seeks Public Comment on Certification from Bloomberg SEF LLC to Implement Available-to-Trade Determinations for Credit Default Swaps

The CFTC is requesting public comment on a certification from Bloomberg SEF LLC ("Bloomberg") to implement available-to-trade determinations for certain interest rate and credit default swap contracts. Bloomberg submitted available-to-trade determinations to the CFTC on a self-certified basis, pursuant to CFTC Rule 37.10 ("Process for a swap execution facility to make a swap available to trade") and Rule 40.6 ("Self-certification of rules"). If Bloomberg's submission is deemed certified by operation of CFTC Rule 40.6, such swap contracts, whether listed or offered by Bloomberg or any other DCM or SEF, will be subject to the trade execution requirement under Commodity Exchange Act Section 2(h)(8). All transactions involving swaps that are generally subject to the trade execution requirement must be executed on either a DCM or SEF, and those transactions executed on an SEF must be executed in accordance with the methods prescribed in CFTC Rule 37.9(a)(2) ("Methods of execution for required and permitted transactions").

The comment period will close on January 8, 2014.

See: CFTC Press Release; Online Comment Filing Form.Related news: CFTC Issues Temporary Registration as Swap Execution Facility to Bloomberg (with Lofchie Comment) (July 31, 2013).See also: Swap Execution Facilities (Cabinet Compilation of links to all SEF Rulebooks and related materials).