2020-28945: Swap Execution Facilities and Trade Execution Requirement

Summary

On November 30, 2018, the Commodity Futures Trading Commission ("CFTC" or the "Commission") published a "Swap Execution Facilities and Trade Execution Requirement" notice of proposed rulemaking ("NPRM") in the Federal Register. While the Commission has adopted certain proposals from the NPRM, in light of feedback the Commission received in response to the remaining proposals in the NPRM, the Commission has determined to not proceed with those unadopted proposals relating to the regulation of swap execution facilities ("SEFs") and the trade execution requirement ("Determination"). In separate final rules, the Commission adopted the following portions of the NPRM: Two exemptions, pursuant to Commodity Exchange Act ("CEA") section 4(c), from the trade execution requirement in CEA section 2(h)(8); and final rules related to audit trail requirements for post- trade allocations, SEF financial resource requirements, and SEF chief compliance officer requirements (collectively, the "Final Rules"). As such, this withdrawal does not impact or alter any of those sections of the NPRM that are being adopted in the Final Rules. In light of the Determination, the Commission has decided to withdraw the unadopted portions of the NPRM.

The agency’s own summary, as published.

What this changes

Amends 6 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

• 17 CFR 9 Rules Relating to Review of Exchange Disciplinary, Access Denial or Other Adverse Actions
• 17 CFR 36 Trade Execution Requirement
• 17 CFR 37 Swap Execution Facilities
• 17 CFR 38 Designated Contract Markets
• 17 CFR 39 Derivatives Clearing Organizations
• 17 CFR 43 Real-Time Public Reporting