December 7, 2021

Volume XI, Number 341

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December 07, 2021

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December 06, 2021

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CFTC News & Updates Week of November 2, 2020

CFTC Expands Its Part 30 Exemptive Program of International Cooperation

On November 2, the Commodity Futures Trading Commission (CFTC) issued Part 30 exemptive orders to multiple non-US intermediaries, upon determining that they are subject to comparable customer protection standards in their home jurisdiction. Those intermediaries are the Bombay Stock Exchange (BSE), the National Stock Exchange International Financial Service Centre Limited (NSE IFC), the Montreal Exchange (MX), NZX Limited (NZX) and UBS AG (UBS). The orders issued to BSE, NSE IFC and NZX extend exemptive relief to their respective members, while the order issued to MX amends and consolidates prior exemptive relief granted on behalf of its members.

The order issued to UBS is particularly noteworthy, as it is the first such order issued to an entity that is not a foreign self-regulatory organization or regulator.

The CFTC press release, including links to the exemptive orders, is available here.

CFTC Approves Changes to Swap Clearing Requirement Exemptions

On November 2, the Commodity Futures Trading Commission (CFTC) voted to approve final rules that exempt swaps entered into by certain financial institutions from the CFTC’s clearing requirement under Section 2(h)(1) of the Commodity Exchange Act. These financial institutions include central banks, sovereign entities, international financial institutions, certain bank holding companies, savings and loan holding companies and community development financial institutions. In addition, the CFTC released a compliance schedule identifying the past compliance dates for the swap clearing requirement regulations released in 2012 and 2016. The rule will become effective 30 days after its publication in the Federal Register.

The CFTC press release, which includes a link to the rule, is available here.

CFTC Approves SEF Registration Exemptions for Additional Recognized Market Operators in Singapore

On November 2, the Commodity Futures Trading Commission (CFTC) issued an amended order exempting eight Recognized Market Operators (RMOs) authorized within Singapore from swap execution facility (SEF) registration requirements. The affected RMOs are BGC Partners (Singapore) Ltd., Euronext Markets Singapore Pte Ltd., GFI Group Pte Ltd., ICAP (Singapore) Pte Ltd., Nittan Capital Singapore Pte Ltd., Refinitiv Transaction Services Pte Ltd., TFS Currencies Pte Ltd. and Tullett Prebon (Singapore) Limited. The total number of exempted Approved Exchanges and RMOs is now 13.

The CFTC press release, including a link to the amended order, is available here.

CFTC Approves Eris Clearing, LLC to Clear Fully-Collateralized Swaps

The Commodity Futures Trading Commission (CFTC) has approved an amended order authorizing Eris Clearing LLC (Eris) to clear additional products. Under the order, Eris, which previously had been authorized to clear fully-collateralized futures on virtual currency, is now authorized to provide clearing services on fully-collateralized futures and swaps on all products.

The CFTC press release, including a link to the amended order, is available here.

CFTC Approves KalshiEX LLC as Designated Contract Market

On November 4, the Commodity Futures Trading Commission (CFTC) announced that it had approved the application of KalshiEX LLC for designation as a contract market under Section 5 of the Commodity Exchange Act and Part 38 of the CFTC’s regulations.

The CFTC press release, including a link to the Order of Designation, is available here.

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 311
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About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm
Partner

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.

...

312-902-5372
Elizabeth Organ Financial Markets and Funds Katten Muchin Rosenman New York, NY
Associate

Elizabeth Organ represents clients across the financial services industry, with a focus on regulatory compliance and advice. Liz's background positions her to provide valuable legal counsel on transactional and regulatory matters relating to commodities and derivatives, investment management, and cryptoassets and distributed ledger products.

Helping clients address complex regulatory and legal challenges

Liz assists clients with a range of financial services regulatory matters, collaborating with legal staff, business executives and regulators alike to pursue...

212.940.6561
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