In this newsletter, we provide a snapshot of the principal European, US and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.
Derivatives
CFTC Provides No-Action Relief for Swap Execution Facilities from Certain Block Trade Requirements
On September 19, 2014, the US Commodity Futures Trading Commission's ("CFTC") Division of Market Oversight issued time-limited no-action relief for Swap Execution Facilities ("SEFs") from certain block trade requirements. The CFTC no-action relief specifically exempts SEFs from the "occurs away" requirement under CFTC Regulation 43.2 and allows SEFs to facilitate the execution of block trades on non-Order Book trading systems or platforms subject to certain conditions outlined in the no-action letter. The time-limited no-action relief granted by the CFTC will end on December 15, 2015.
The full text of the CFTC no-action letter is available at: http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-118.pdf.
CFTC Approves Final Rule and Proposed Rule at an Open Meeting
On September 17, 2014, the CFTC approved, by a unanimous vote at an Open Meeting, the Final Rule on Exclusion of Utility Operations-Related Swaps with Utility Special Entities from De Minimis Threshold for Swaps with Special Entities. The CFTC also approved the Proposed Rule on Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants.
Additional information on the CFTC Open Meeting is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7004-14.
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