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CFTC no-action nano-avalanche

The CFTC issued a total of four no-action letters yesterday. A brief summary of each follows:

  • Time-limited no-action relief to exempt swaps floor-trading from the aggregate calculation that defines Swap Dealer status. The relief expires on 1st November 2013.

  • Severely time-limited no-action relief for SEF’s and DCM’s from the one-day business product review for newly-listed swap products. The CFTC wishes to avoid market interruption during a period of rapid product migration to a regulated environment. The relief expires on 3rd October 2013. The press release notes that the relief may be extended by imminent government shutdown.

  • Time-limited no-action relief for FCM’s and temporarily-registered SEF’s in respect of pre-execution credit checks by clearing FCM’s. The relief is subject to numerous conditions and expires 1st November 2013.

  • Time-limited no-action relief from the obligation for temporarily-registered SEF’s to provide confirmations for non-cleared swaps. The relief expires 30th October 2013 for IRS, FX and credit swaps. There is a longer extension until 2nd December 2013 in respect of non-cleared equity and other commodity swaps.

The CFTC’s DMO also issued an amendment to No-Action  Letter 13-55 (see previous post), changing three references from  “primary economic terms” to “creation” data.

These no-action letters are specifically targeted and of markedly short duration, they will have little if any systemic impact. It is perhaps a positive sign  that the CFTC is now able to attend to fine-tuning.

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