CFTC Issues No-Action Relief for Swaps Trading on Multilateral Trading Facilities Overseen by Competent Authorities Designated by EU Member States (CFTC Letter 14-31)

The CFTC Division of Market Oversight ("DMO") issued a time-limited no-action letter extending relief for Multilateral Trading Facilities overseen by competent authorities designated by European Union Member States ("MTFs") from the swap execution facility ("SEF") registration requirement, pursuant to CEA Section 5h(a)(1) ("Swap Execution Facilities") and CFTC Rule 37.3(a)(1) ("Requirements and Procedures for Registration"). Additionally, the letter extends relief to parties executing swap transactions on or pursuant to the rules of MTFs from the trade execution mandate set out in CEA Section 2(h)(8) ("Jurisdiction of Commission; Liability of Principal for Act of Agent; Commodity Futures Trading Commission; Transaction in Interstate Commerce").

DMO is providing additional time to allow MTFs and parties executing swap transactions on or pursuant to the rules of MTFs to consider the clarifications and amended conditions that will be featured in the Replacement Long-Term No-Action Letter once it is published by the CFTC. DMO stated it intends to issue in the near future a no-action letter providing conditional, long-term relief for MTFs that, upon publication by the CFTC, will supersede CFTC Letter 14-16 ("Replacement Long-Term No-Action Letter").

The relief will expire for any particular MTF upon the earlier of: (i) DMO's issuance of a letter acknowledging receipt of, and granting an MTF's relief request pursuant to the Replacement Long-Term No-Action Letter or (ii) 11:59 pm EDT on May 14, 2014.

See:CFTC Letter 14-31.See also: CFTC Releases Joint Statement with EC and Two No-Action Letters for European Exchanges (CFTC Letters 14-15 and 14-16) (with Lofchie Comment) (February 12, 2014).