Trade Activities That Could Trigger Compliance With Swap Execution Facility Registration Requirements

2021.10.05

You must be registered or log in on Mondaq. The website is www. com. Trade activities that could trigger compliance with registration requirements for swap execution facilities pursuant to Section 5h(a)(1) (SEFs). Under section 3A, paragraph (1), ‘Requirements and procedures for registration. A staff advisory clarifying some trading activities may trigger compliance with the swap execution facility (SEF) registration requirement in the Commodity Exchange Act. Today the Commodity Futures Trading Commission granted no action relief from reinstatement requirements under CFTC Regulation 37. And, 3d) subject to some conditions. The CFTC issued a transfer order approving the transfer of trueEX LLC’s SEF registration to its affiliate. You can check out the CFTC press release. Today, a temporary no action letter was issued by the Commodity Futures Trading Commission’s Market Participants Division to nonbank swap dealers. SEFs are trading facilities that operate under the regulatory supervision of the CFTC. SC. That is number 7b-3. SEF’s were created by the addition of Section 5h of the Act and Section 733 of the Dodd-Frank Wall Street ReformThe stated goals of the Dodd-Frank Act are to promote the trading of swaps on SEFs and to promote pretrade price.

 

 

How to Register As a Swap Execution Facility:

The CCFTC letter outlines situations that would trigger the registration requirement. The multi to multi prong of the SEF definition satisfies the multi to multi prong of the SEF definition. Multiple participants are able to accept proposals and offers.  Staff described its review of facilities that initiate a bid or offer through oneonone communication. The staff differentiated liquidity provider platforms from request for quote systems where a requester can initiate transactions by submitting an RF. Only swaps that are not subject to the trade execution requirement are listed by entities. If a facility meets the definition of a SEF under Section 1a, it could still be required to register with the CFTC asFacility offers non electronic methods of trading. An entity may need to register as a SEF for (1) facilitating trading or execution of swaps through one to many or bilateral channels. It is dependent on all of the facts and circumstances pertaining to the operation of the facility before determining if a facility is required to register. I suggest that entities in the above categories review their activities and examine whether they meet the SEF definition, thus requiring SEF. In the course of operation since the transfer, Tassat has been in compliance with the commodities exchange act and the CEA. Tassat has seen the listing of the Bitcoin swap contract since the issuance of the transfer order. Tsassat recorded delays due to the COVID-19 pandemic. The launch of its Bitcoin swap contract continued by Tassat, however, on August 1, 2020, pursuant to CFTC Regulation 40. Tassat deemed that one of the F’s was dormant.  The reason is because a twelve consecutive month had no tradingIt is required by Tassat to seek reinstatement of its SEF registration in order to continue operating. Tassat requested relief from reinstatement requirements under CFTC Regulation 37. CFTC staff has provided temporary no action relief to 23 provisionally registered nonbank SDs domiciled in Japan, Mexico. Today’s temporary relief provides necessary regulatory certainty as the Commission engages with foreign counterparts on the review of comparability requests. The goal is to strike the appropriate balance in setting capital and financial reporting requirements for nonbank SDs dually registered in our respective jurisdictions. The acting Chairman, Mr.  Behnam, also indicated that in the coming months each of the four jurisdictions would be announced by the Commission for theThe market participants division is diligently working to complete the review. Part One is traded by Eligible Contract Participants (ECPs) on a SEF. How to register as a Swap Execution Facility Article 5h(1) of the Act requires a person who offers a trading facility. I suggest reading section 5 of the Act, 7 UU, for the requirements for registration as a SEF. That is S. It is a c. Part 37 of the CFTC’s regulations have now been changed. It is provided in Section 37. An applicant seeking registration as a SEF may request that the Commission grant the applicant temporary registration under section 3c of the CFTC’s regulationsAn applicant may operate as a SEF upon the Commission granting temporary registration. Applicants seeking temporary registration will be considered after August 5, 2015, in accordance with CFTC regulation 37.

 

 

The CFTC’s Relief Grant Expires on October 6, 2022:

A facility that meets the definition of a SEF may also be required to register as a SEF. Only registered contractual markets provide an exception to the registration requirement. This article intends to provide general guidance to the subject matter. Expert advice can be sought about your specific circumstances. It is a variable between active and passive. Any person operating a facility for the trading or processing of swaps also must contact Nancy Markowitz at [email protected] or Jonathan LaveThe choice is either active or passive. The request for reinstatement was accepted by Tassat, who must file it with the CFTC no later than one month from the date ofTassat agreed to all of the applicable CEA and CFTC regulations during the period of relief. The no action letter was issued in response to a joint request received by their nonbank SD members. The relief granted by the letter expires on the earlier of October 6, 2022 or the issuance by the Commission of a final Capital Comparability New rules or rule amendments may be implemented by the CFTC.  CFTC may be certified to do so.