CFTC Extends Time-Limited No-Action Relief to Eurex Clearing (CFTC Letter 14-27)
The CFTC Division of Clearing and Risk ("DCR") issued an extension of time-limited no-action relief to Eurex Clearing AG (Eurex Clearing).
In the extension of CFTC Letter 13-44, DCR states that it will not recommend enforcement against:
- Eurex Clearing for failing to register as a derivatives clearing organization ("DCO") under CEA Section 5b(a), or
- clearing members of Eurex Clearing that are U.S. persons for failure to clear certain interest rate swaps or certain credit default swaps on a broad-based index of reference entities ("Index CDS") through a registered or exempt DCO, pursuant to the requirements of CEA Section 2(h)(1)(A) and the implementing regulations thereunder.
The extension of no-action relief will expire at the earlier of: (i) December 31, 2014, or (ii) the date upon which Eurex Clearing becomes registered as a DCO with respect to its IRS and Index CDS clearing businesses.
See: CFTC Press Release; CFTC Letter 14-27.Related news: CFTC Staff Issues Four No-Action Letters on Cross-Border Swaps Issues (Letters 13-43, 13-44, 13-45, 13-46) (with Lofchie Comment)(July 11, 2013).