Aggregated News From Investment Management Regulators

CFTC Staff Extends Existing Brexit-Related Relief to Provide Market Certainty


Please complete the required fields.

The Commodity Futures Trading Commission’s Market Participants Division (MPD) and Division of Market Oversight (DMO) announced today they are extending previously granted temporary no-action relief to provide greater certainty to the global marketplace in connection with the withdrawal of the United Kingdom from the European Union, known as Brexit. 

“These extensions are just one of many examples of the CFTC’s efforts to support the sound functioning of global financial markets,” said Chairman and Chief Executive Heath P. Tarbert. “We will continue working with our counterparts across the Atlantic to take whatever steps are necessary to ensure the continuity of derivatives trading and clearing in markets impacted by Brexit.”

“MPD is committed to providing market participants with the regulatory certainty and confidence they need to continue trading and dynamically managing their risk in the global derivatives markets,” said MPD Director Joshua Sterling.  

“The relief we are providing further demonstrates DMO’s commitment to global swaps markets that are transparent, fair, competitive, secure, and free of fragmentation,” added DMO Director Dorothy DeWitt.

In anticipation of the expiration of the Brexit transition period on December 31, 2020, MPD and DMO are issuing two no-action letters to extend regulatory relief provided in April 2019. [See Press Release No. 7910-19] One letter ensures the omnibus relief provided by the Division of Swap Dealer and Intermediary Oversight (now reorganized as MPD) to EU entities in certain staff letters continues to be available for UK entities following the end of the transition period. The other letter stipulates that MPD and DMO will provide temporary relief to ensure the continued availability of substituted compliance and regulatory relief under CFTC comparability determinations and exemptive orders the CFTC originally issued for EU entities. 

The relief will become effective upon the expiration of the Brexit transition period.

The CFTC has taken a number of other steps to facilitate a smooth transition upon withdrawal of the UK from the EU. For example, in February 2019, the CFTC, the Bank of England and its Prudential Regulation Authority, and the Financial Conduct Authority issued a statement regarding the continuity of derivatives trading and clearing post-Brexit. [See CFTC Press Release No. 7876-19]

The UK withdrew from the EU on January 31, 2020 and entered into a transition period during which EU law continues to apply in the UK.

Source link

Regulator Information

Abbreviation: CFTC
Jurisdiction: USA

Recent Articles

Fraudsters Posing as Brokers or Investment Advisers – Investor Alert

The FBI Criminal Investigative Division and the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy (OIEA) warn of fraudsters swindling investors while preten

Announcement: FMA imposes a sanction against S Immo AG for delayed publication of a proprietary transaction

The Austrian Financial Market Authority (FMA) hereby announces that it has imposed a fine of EUR 16,000.00 by means of a penal order under...

Origin Capital Group (clone of FCA authorised firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Financial Stability Report (2020 annual report)​

Compliance Details javascript:commonShowModalDialog(‘{SiteUrl}/_layouts/itemexpiration.

Get the latest from Regulatory.News in your inbox!