The CFTC Division of Market Oversight ("DMO") granted no-action relief to a swap execution facility ("SEF") from the requirement to reinstate its registration following a "dormant" period.

The DMO indicated that the relief was granted to Tassat Derivatives LLC ("Tassat") as a result of delays the firm encountered in the launch of a Bitcoin contract, which resulted in its SEF registration being deemed dormant under CFTC Rule 40.01(f) (i.e., because there was no trading on the platform for a period of 12 consecutive months).

In response to Tassat's request, the DMO stated that it will not recommend enforcement action against Tassat for failing to reinstate its SEF registration under CFTC Rule 37.3(d), provided that Tassat:

  • files for reinstatement no later than one month from the date of the letter;
  • does not launch its Bitcoin contract for trading until it files for reinstatement and until its Bitcoin product has been recertified for trading; and
  • does not certify or list for trading any product aside from its previously certified Bitcoin swap contract until its request for reinstatement has been granted.

The relief is effective immediately and will remain in effect until the earlier of (i) 12 months after the issuance of the relief or (ii) the date on which the CFTC either approves or denies Tassat's application for SEF registration reinstatement.

Primary Sources

  1. CFTC No-Action Letter 20-29: No-Action Relief from Swap Execution Facility Reinstatement Requirements under Commission Regulation 37.3(d)
  2. CFTC Press Release: CFTC Staff Provides No-Action Relief to Registrant from SEF Reinstatement Requirements

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