CFTC Extends No-Action Relief to SEFs From Certain Audit Trail Requirements Related to Post-Execution Allocation Information
On November 13, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) issued CFTC Staff Letter No. 20-36, which extends no-action relief to swap execution facilities (SEFs) from the requirement to capture post-execution allocation information in their audit trail data.
The no-action relief provided by CFTC Staff Letter No. 20-36 is conditioned upon the SEF having a rule which requires that market participants provide post-execution allocation information to the SEF for particular trades, in the event that the SEF, at the request of the CFTC or otherwise, requests such information. Further, if in the course of a trade practice surveillance or market surveillance investigation into any trading activity involving post-execution allocations undertaken in response to a request of the CFTC or otherwise, the SEF must ascertain whether a post-execution allocation was made, and if so, the SEF must request, obtain, and review the post-execution allocation information as part of its investigation.
The relief provided by CFTC Staff Letter No. 20-36 will expire on the earlier of either (1) November 15, 2021 at 11:59 p.m. EST; or (2) the applicable effective or compliance date of a CFTC action (including a rulemaking or order) providing a permanent solution for SEF audit trail obligations related to post-execution allocation information.
CFTC Staff Letter No. 20-36 is available here.