CFTC Issues No-Action Letter for Singapore Exchange Derivatives Clearing Limited and its Clearing Members

The CFTC's Division of Clearing and Risk ("DCR") issued a letter stating that DCR will not recommend that the CFTC take action against Singapore Exchange Derivatives Clearing Limited ("SGX-DC") for failing to register as a derivatives clearing organization ("DCO") under CEA Section 5b(a), and will not recommend action against SGX-DC's clearing members for failing to register as futures commission merchants ("FCMs") under CEA Section 4d(f)(1). This relief is in relation to the clearing and carrying of existing or new positions in certain commodity swaps for U.S. customers.

This relief will be effective until the earlier of December 31, 2013, or the date upon which SGX-DC registers as a DCO, at which date the positions of U.S. customers must be held only by clearing members that are registered FCMs.

See: CFTC Letter 12-63: Sec. 5b(a) and Sec. 4d(f)(1) of the CEA; No-Action.See also: CFTC Issues No-Action Letter for Japan Securities Clearing Corporation and Its Clearing Participants.