The Commodity Futures Trading Commission (CTFC) has announced that the new replacement no action letter for swaps traded on Multliateral Trading Facilities (MTFs) contains notable clarifications seeking to harmonise the framework for SEFs and MTFs.
The no action letter conditions include that:
- an MTF must report all swap transactions to a CFTC registered or provisionally registered swap data repository as if it were a SEF;
- an MTF must certify that it is subject to (and compliant with) regulations that require all MTF participants to consent to the MTF’s jurisdiction, thereby enabling the MTF to effectively enforce its rules; and
- qualifying MTFs must submit monthly reports to the CFTC summarising the levels of participation and volume by US persons.
Clarifications are also provided regarding the reporting obligations for counterparties to swap transactions executed on or pursuant to the rules of a qualifying MTF.