CFTC Issues No-Action Relief for Designated Contract Markets (CFTC Letter 14-50)

The CFTC Division of Clearing and Risk and the Division of Market Oversight (together, "the Divisions") issued a no-action letter to designated contract markets ("DCMs") from compliance with certain requirements of CFTC Rule 38.152 ("Abusive Trading Practices Prohibited"). Specifically, the letter provides that the CFTC will not seek enforcement action against a DCM for failing to comply with CFTC Rule 38.152's prohibition of pre-arranged trading, if, after a trade has been rejected for clearing, the DCM permits a new trade, with terms and conditions that match the terms and conditions of the original trade, other than any such error and the time of execution, to be submitted for clearing.

The relief will expire on June 30, 2014.

See: CFTC Letter 14-50.