The CFTC Divisions of Market and Intermediary Oversight granted conditional no-action relief to an Australian multilateral swap-trading facility from the requirement to register as a swap-execution facility ("SEF"). The CFTC noted that with this action, the Australian facility becomes the first foreign-regulated, multilateral swap-trading facility that permits direct access to U.S. persons to qualify for long-term no-action relief. The action also provides relief to parties executing swaps in the Australian facility from the CEA's trade execution requirement concerning certain swap-data reporting obligations under CFTC rules. Under certain conditions, swap dealers and major swap participants also will be excused from complying with certain business conduct, confirmation and swap-trading relationship requirements.
This relief is being granted due to the determination that the Australian multilateral swaps-trading facility is subject to sufficient pre- and post-trade price transparency requirements in Australia, as well as appropriate governmental oversight.
The relief will continue until the effective date of any CFTC-exempt SEF framework adopted pursuant to CEA Section 5h(g). The CFTC emphasized that the no-action letter was modeled after CFTC No-Action Letter 14-46, which "invited EU-regulated multilateral trading facilities to apply for similar, long-term no-action relief."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
