The CFTC Extends Conditional Time-Limited No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 14-105)

The CFTC Division of Market Oversight ("DMO") issued a no-action letter extending the conditional no-action relief provided in CFTC Letter 13-76 for Yieldbroker Pty Limited ("Yieldbroker").

In the letter, DMO stated that it will not take enforcement action against Yieldbroker for failing to register as a swap execution facility ("SEF") under CEA Section 5h(a)(1) ("Swap Execution Facilities") and CFTC Rule 37.3(a)(1) ("Requirements and Procedures for Registration"). The relief is contingent upon the six conditions outlined in letter 13-76, which are as follows:

1. Yieldbroker will not offer trading on its platform in any product that is subject to the trade execution mandate, pursuant to CEA Section 2(h)(8);
2. Yieldbroker will only offer trading in Australian dollar-denominated interest rate swaps on its platform;
3. Yieldbroker will maintain its AML license and remain an exchange in good standing with ASIC and other applicable regulators;
4. Yieldbroker must provide impartial access to its platform consistent with the requirements of CFTC Rule 37.202(a) "Access Requirements") as well as those of any related CFTC guidance;
5. Yieldbroker must at all times maintain an "order book" that complies with CFTC Rule 37.3(a)(3); and
6. Yieldbroker must provide notice to its participants that each swap transaction executed on or pursuant to the rules of its platform during the period of relief provided herein is not occurring on a registered SEF.

The relief provided in the letter will expire on November 15, 2014.

See: CFTC Letter 14-105.Related news: CFTC Extends Conditional No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 14-70) (May 14, 2014); CFTC Issues No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 13-76) (December 23, 2013); CFTC Extends Time-Limited No-Action Relief to Yieldbroker Pty Limited (CFTC Letter 13-67) (October 31, 2013); CFTC's DMO Provides Time-Limited No-Action Relief to Australian-Based Trading Platform Yieldbroker Pty Limited (CFTC Letter 13-59) (September 30, 2013).