Source: US Commodity Futures Trading Commission
Washington, D.C. — The Commodity Futures Trading Commission’s Market Participants Division (MPD), Division of Clearing and Risk (DCR), Division of Data (DOD), and Division of Market Oversight (DMO) today announced they are issuing no-action relief, effective immediately, to provide greater certainty to the global marketplace in connection with the withdrawal of the United Kingdom from the European Union, known as Brexit.
The Divisions are providing two no-action relief positions, subject to certain specified conditions. MPD, DCR, DOD and DMO are providing relief for U.S. swap dealers (SDs) from certain transaction-level requirements for certain swaps between their foreign branches and non-U.S. persons. MPD is also providing relief to SDs by allowing them to utilize existing relief provided in CFTC Staff Letter No. 20-39 in lieu of the required comparability determination under certain exceptions in the Commission’s recent cross-border final rule.
The CFTC has taken a number of other steps to facilitate a smooth transition upon the withdrawal of the UK from the EU. For example, in February 2019, the CFTC, the Bank of England and its Prudential Regulation Authority, and the Financial Conduct Authority issued a statement regarding the continuity of derivatives trading and clearing post-Brexit. [See CFTC Press Release No. 7876-19]