Effective Date Nears on CFTC Block Trade Rules for ITBC Swaps
The CFTC Division of Market Oversight reminded swap execution facilities ("SEFs") of the expiration of the time-limited no-action relief from the "occurs away" requirement under the CFTC Rule 43.2 ("Real-Time Public Reporting: Definitions") definition for "block trade" on swaps "intended to be cleared." The no-action relief will expire on May 25, 2022.
As previously covered, amended CFTC Rule 43.2 defines a block trade as a swap transaction that "occurs away" from the registered SEF's or designated contract market's rules and procedures. The granted relief had extended to relief from the conduct of pre-execution credit screening provided through CFTC Letter No. 17-60 (which in turn extended relief granted in CFTC Letters 14-118, 15-60 and 16-74). Under amended Regulation 43.2, "block trades" may be executed on a SEF non-order book trading system, and the compliance date for those amendments is May 25, 2022.
Commentary
While the no-action relief is going away, the practical change is minimal, given that amended Part 43 essentially codified the no-action relief and also permitted block trades that are not "intended to be cleared" to be executed on non-order book trading systems and platforms.
Related Articles
-
The CFTC Division of Market Oversight extended time-limited no-action relief to swap execution facilities from the requirement that a swap block trade must occur "away" from a trading system or platform.
-
The CFTC adopted amendments to regulations governing (i) real-time public swap reporting and dissemination, (ii) swap data recordkeeping and reporting, and (iii) swap data verification policies and procedures.
-
The CFTC Division of Market Oversight extended time-limited no-action relief to swap execution facilities from the "occurs away" requirement under the CFTC definition of block trade.
-
-
