CFTC Issues Time-Limited No-Action Relief to Provide Certain Exemptive Relief Consistent With the Expiring July 2012 Exemptive Order

The CFTC's Division of Market Oversight (DMO) issued the attached no-action letter providing temporary no-action relief permitting transactions and relevant persons to continue to operate in compliance with various CEA exemptive and excluding provisions in place prior to July 16, 2011, subject to, among other conditions, various anti-fraud and anti-manipulation prohibitions. This relief is consistent with the intent to preserve the regulatory status quo with respect to transactions and persons described in certain paragraphs of the CFTC's expiring Second Amendment to July 14, 2011 Order (due to expire on December 31, 2012).

The no-action letter's relief will expire on the earlier of June 30, 2013, or the effective date of the SEF final rules, and affords certain relief for CEA Sections 2(d), 2(e), 2(g), 2(h), or 5d-compliant platforms that have a DCM or SEF application pending before the CFTC.

See also: Effective Date for Swap Regulation (July 14 Order) Amendment to July 14, 2011 Order for Swap Regulation; Second Amendment to July 14, 2011 Order for Swap Regulation (Cabinet documents).