CFTC Issues No-Action Relief to OTC Clearing Hong Kong Limited for Failing to Register as a DCO (CFTC Letter 14-68)

The Division of Clearing and Risk ("DCR") issued time-limited no-action relief to OTC Clearing Hong Kong Limited ("OTC Clear") temporarily excusing it from failing to register as a derivatives clearing organization ("DCO") pursuant to CEA Section 5b(a) ("Derivatives Clearing Organizations"). DCR also provided relief to U.S. clearing participants of OTC Clear for failure to clear certain interest rate swaps and certain non-deliverable forwards through a registered DCO pursuant to CEA Section 2(h)(1)(A) ("Jurisdiction of Commission; Liability of Principal for Act of Agent; Commodity Futures Trading Commission; Transaction in Interstate Commerce").

The no-action relief is effective until December 31, 2014, or, if earlier, the date upon which the CFTC either registers OTC Clear as a DCO under CEA Section 5b(a) or exempts OTC Clear from registration under Section 5b(h).

See: Letter 14-68.