May 24, 2019 | News

Commodity Futures Trading Commissions Divisions of Swap Dealer & Intermediary Oversight to Grant NoAction Relief on Heels of Brexit

In anticipation of the withdrawal of the UK and Northern Ireland from the European Union, the CFTC’s DSIO, announced they will grant no-action relief to provide greater certainty to the global marketplace due to the heightened market uncertainty.

To bring more certainty to the global derivatives markets, the DSIO, DMO (Market Oversight), and DCR (Clearing and Risk) have issued two joint staff letters.  The first letter ensures that existing regulatory relief provided by the aforementioned divisions affecting EU entities continues to be available for UK entities following Brexit.  In the second letter, the DSIO and DMO provide time-limited no-action relief to ensure the continued availability, following Brexit, of substituted compliance and regulatory relief under certain existing CFTC comparability determinations and exemption orders originally issued by the CFTC for EU entities, while CFTC staff undertakes an analysis of UK law in order to make appropriate recommendations of comparability or exemption to the CFTC.

The staff positions and time-limited relief in each of the letters becomes effective if and when the UK withdraws from the EU.

Read the staff letters here: