CFTC Staff Extends Brexit-related Relief to UK Entities

The CFTC staff extended previously granted no-action relief relating to Brexit.

The Division of Market Oversight and the Market Participants Division extended relief previously granted in CFTC Letter 21-24 (see previous coverage) relating to comparability determinations for various regulations applicable to swap dealers based in the United Kingdom, as well as exemptions from SEF registration for certain trading facilities. The relief under the new letter expires upon the earlier of December 31, 2024 or (i) in the case of the relief for swap dealers, a comparability determination by the CFTC for the United Kingdom covering similar subject matter as the no-action relief, and (ii) in the case of the relief for trading facilities, the effective date of any CFTC exemptive order under CEA Section 5h(g) ("Swap execution facility rules") for UK-authorized facilities.

The CFTC letter also revised the list of trading facilities able to rely on the exemptive relief.