SIFMA Submits Comments to CFTC Requesting No-Action Relief Relating to SEF Confirmations

SIFMA submitted comments to the CFTC requesting time-limited no-action relief relating to confirmations for swaps not required or intended to be cleared. 

SIFMA’s letter echoed a recent letter to the CFTC from the Global Foreign Exchange Division (“GFXD”) of the Global Financial Markets Association (“GFMA”), which requested that the CFTC Division of Marketing Oversight (“DMO”) not recommend enforcement action against a swap execution facility (“SEF”) that has failed, prior to January 1, 2015, to comply with the requirements of the CFTC in connection with swap transactions executed on the SEF that are not required or intended to be submitted for clearing, provided that certain conditions listed in the letter are met. 

According to SIFMA, the relief requested by GFXD intends to establish a transitional confirmation and reporting protocol, and to establish a relationship between specific economic transaction terms and non-transaction specific relationship terms consistent with conventional documentation architecture used throughout the financial markets while ensuring that these arrangements support the CFTC’s public and regulatory transparency requirements and do not facilitate the circumvention of CFTC regulatory reporting requirements or SEF rules through bilaterally negotiated documentation terms.

SIFMA urged the DMO to provide the time-limited no-action relief requested in the GFXD letter. 

See: SIFMA Comment Letter.
See also: GFXD Comment Letter.

 

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