CFTC Announces Issuance of Swap Relief for Australian Entities (CFTC Letter 14-117) (with Lofchie Video Selection)
The CFTC Divisions of Market Oversight ("DMO") and Swap and Intermediary Oversight announced the issuance of an enabling no-action letter for qualifying swaps trading platforms that are licensed in Australia and overseen by the Australian Securities and Investments Commission ("Australian Licensed Markets").
The enabling no-action letter provides relief for the following platforms and parties:
- qualifying Australian Licensed Markets, from the SEF registration requirement under CEA Section 5h(a)(1) ("Swap Execution Facilities");
- parties executing swap transactions on qualifying Australian Licensed Markets, from the trade execution mandate under CEA Section 2(h)(8) ("Trade Execution"); and
- swap dealers and major swap participants executing swap transactions on qualifying Australian Licensed Markets, from certain requirements under the CFTC's business conduct rules and for which these registrants otherwise would receive or be subject to similar regulatory treatment if executing swap transactions on SEFs.
According to the relief, an Australian Licensed Market must set forth in an undertaking that it will comply with the conditions in the letter. Relief will trigger after DMO reviews the applicant's certification and issues a responsive relief letter.
The no-action letter will expire upon the effective date of any final rules implementing the CFTC's authority, under CEA Section 5h(g), to exempt facilities that are "subject to comparable, comprehensive supervision and regulation on a consolidated basis by . . . the appropriate governmental authorities in the home country of the facility" from the SEF registration requirement of CEA section 5h(a)(1) and CFTC Rule 37.3(a)(1) ("Requirements for Registration").
Lofchie Video Selection: In which our close relationship with the Australians is demonstrated.
See: CFTC Letter 14-117.
Related news: CFTC Issues Conditional No-Action Relief with Respect to Swaps Trading on Multilateral Trading Facilities on European Exchanges (CFTC Letter 14-46) (April 9, 2014).