CFTC Seeks Public Comment on ICE Swap Trade, LLC's Self-Certification of Package Trade Rule

The CFTC announced that it is seeking public comment on certain rule amendments self-certified by ICE Swap Trade, LLC ("ICE Swap Trade") concerning the treatment of "package transactions." The CFTC is requesting that the public consider the following questions in preparing comments regarding the certification:

1. What are the current prevailing market conventions regarding the execution of package transactions?
2. Do package transactions comply with the definition of "block trade" set forth in CFTC Rule 43.2 ("Definitions")?
3. Please identify each legal, economic and business rationale for permitting package transactions to be executed as block trades, as defined in CFTC Rule 43.2. In particular, please identify each rationale for permitting package transactions to occur away from a registered SEF or DCM's trading system or platform, but pursuant to the rules of an SEF or DCM.
4. Rule 701(a) states that block trades, among other requirements, must "satisfy such minimum notional requirements [pursuant to Commission regulations] or be a Packaged Transaction. . . ." Please identify each legal, economic and business rationale for permitting package transactions to be executed as block trades, in particular without fulfilling the appropriate minimum block sizes prescribed under CFTC Rules Part 43 ("Real-Time Public Reporting").
5. CFTC Rule 43.5(d) ("Time Delays for Public Dissemination of Swap Transaction and Pricing Data") provides certain time delays for the public dissemination of transaction and pricing data for block trades that are executed pursuant to the rules of a registered SEF or DCM. Please identify each legal, economic and business rationale for providing such time delays to package transactions.
6. Rule 701(k) defines a "Packaged Transaction" as a transaction that, among other things, consists of offsetting components that are approximately equivalent in size (measured by the amount of risk of fluctuation of a specified asset). Please provide comment on these criteria, in particular with respect to the degree of size equivalence that would be required between the components.

Comments must be submitted by April 23, 2014.

See: Press Release; Online Comment Portal.