CFTC Extends SEF Rule No-Action Relief

On 31 December 2013, the Division of Market Oversight (“DMO”) within the CFTC issued a no-action relief letter in relation to Swap Execution Facility (“SEF”) rules enacted under the Dodd-Frank Act.  The relief was regarded as necessary to avoid the possibility that entities which had submitted or planned to submit an application to become a SEF or designated contract market (“DCM”) would not be able to continue operating under a Dodd-Frank regime whilst their application was being reviewed.

The relief provided by the 31 December 2012 letter expires on 30 June 2013, prior to the effective date of the SEF final rulemaking on 5 August 2013.  On 17 June 2013, in order to ensure that industry is not unduly disrupted during this transitional stage, the DMO issued an extension to the no-action relief.  This extension commences on 1 July 2013 and expires on 2 October 2013, the compliance date of the SEF final rulemaking.