The CFTC Division of Clearing and Risk granted relief to Eurex Clearing AG ("Eurex Clearing"), a non-U.S. derivatives clearing organization, from certain annual reporting requirements for audited financial statements under CFTC Rule 39.19(c)(3)(ii).
Previously, the CFTC granted Eurex Clearing permission to clear certain proprietary trades for its U.S. clearing members despite the organization's failure to demonstrate compliance with straight-through requirements (see CFTC Letter 16-04). This no-action relief permits Eurex Clearing to file audited financial statements based on German statutory accounting principles for the year ending on December 31, 2016, and for subsequent years in which Eurex Clearing relies on CFTC Letter 16-04.
In granting this relief, the Division noted: (i) the "financial and operational resources necessary to prepare audited financial statements in U.S. GAAP or IFRS," (ii) that "Eurex is not otherwise required to . . . [prepare such statements], and has not historically done so," and (iii) that Eurex Clearing "does not currently provide clearing services for U.S. customers and is not permitted to do so given its reliance on Letter 16-04."
The relief will expire when Eurex Clearing is in compliance with straight-through processing requirements and ceases to rely on the relief granted in CFTC Letter 16-04.
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