The second phase of required clearing for certain credit default swaps (CDS) and interest rate swaps begins today. Commodity pools, private funds, and persons predominantly engaged in activities that are in the business of banking, or in activities that are financial in nature, are included within the definition of Category 2 Entities. These entities are required to begin clearing swaps executed on or after June 10, 2013. The five swap classes that are required to be cleared subject to this timing include the swaps meeting the following specifications: Specification Fixed-to-Floating Swap

The NFA announced that it has taken an emergency enforcement action against SK Madison, LLC ("SK Madison"), a New York-based commodity trading advisor ("CTA"), and Michael James Seward, its sole principal and associated person ("AP"). The NFA has taken the Member Responsibility Action ("MRA") and Associate Responsibility Action ("ARA") to protect customers of SK Madison since the firm and Seward cannot account for at least $900,000 in the SK Madison Commodities LLC Fund's ("SK Pool") participants' funds. The MRA/ARA will remain in effect until such time as SK Madison and Seward have

The Division of Clearing and Risk ("DCR") of the CFTC announced the issuance of a time-limited, no-action letter, granting relief to banking institutions having assets of less than $10 billion ("Small Banks") which are issuers of securities (or subsidiaries of such issuers), from the Board approval requirements of CEA Section 2(j) ("Committee Approval by Board of Exemption from Clearing or Trade Execution Requirements") and CFTC Rule 50.50 ("Exceptions to the Clearing Requirement"). The no-action letter provides that DCR will not recommend an enforcement action for a Small Bank's election of

The CFTC Division of Clearing and Risk ("DCR") issued a time-limited, no-action letter granting relief from required clearing under CEA Section 2(h)(1)(A) ("Standard for Clearing") and CFTC Rules Part 50 ("Clearing Requirement") for certain swaps entered into by qualifying cooperatives. The no-action letter provides that DCR will not recommend enforcement action for a cooperative's failure to clear a swap if the cooperative and the swap meet certain conditions set forth in the no-action letter. To qualify for relief, one of the counterparties to the swap must be a cooperative whose members are

The CFTC's Division of Clearing and Risk ("DCR") issued a letter today stating that the DCR will not recommend that the CFTC take enforcement action against the Corporacioacute;n Andina de Fomento ("CAF") for failure to comply with the clearing requirement of CEA Section 2(h)(1) ("Clearing Requirement") as implemented by CFTC Rules 50.2 ("Treatment of swaps subject to a clearing requirement") and 50.4 ("Classes of swaps required to be cleared"). The DCR believes that granting this no-action to CAF would be consistent with the end-user exception to the Clearing Requirement, in which the CFTC