CFTC Issues Time-Limited No-Action Relief to GTX SEF LLC (CFTC Letter 13-65)
The CFTC's Division of Market Oversight ("DMO") issued a no-action letter providing time-limited relief for GTX SEF LLC ("GTX"). DMO will not recommend that the CFTC take enforcement action against GTX SEF for failure to register as a swap execution facility ("SEF") under CEA Section 5h(a)(1) or CFTC Rule 37.3(a)(1), or against any market participants for use of, or other relationships with, GTX SEF, based on GTX SEF's failure to register as an SEF.
GTX SEF currently operates a U.S.-based multilateral trading platform which brings together multiple third-party buying and selling interests in various foreign exchange products, including non-deliverable foreign exchange forwards.
On September 30, 2013, GTX SEF submitted to the CFTC, pursuant to CFTC Rule 37.3(b), an application for SEF registration. By letter dated October 1, 2013, GTX SEF requested that the DMO not recommend that the Commission take enforcement action against GTX SEF for failure to register as an SEF. As part of its request, GTX SEF represented that it would, during the pendency of its no-action relief:
- comply with all of the substantive requirements applicable to SEFs under the Commodity Exchange Act and the Commission's regulations, and
- comply with any CFTC staff-issued guidance or no-action relief applicable to SEFs issued on or after September 26, 2013.
This no-action relief will commence on October 17, 2013 and expire upon the earlier of: (1) the date on which the Commission grants or denies temporary SEF Registration to GTX SEF, or (2) November 19, 2013, at 12:01 a.m. EST.
See: CFTC No-Action Letter 13-65.