CFTC Proposes to Remove Order Book Requirement for Certain Swap Trades
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Table of Contents
The Commodity Futures Trading Commission (CFTC) has proposed a change to its rules for Swap Execution Facilities (SEFs). Currently, SEFs are required to offer an order book for most swap transactions. However, there is an exception for trades that are not subject to the trade execution requirement under the Commodity Exchange Act. These specific trades are called “permitted transactions.”
Why it matters: This is a technical adjustment to existing regulations. It streamlines the operational requirements for SEFs regarding a specific category of trades that already have different execution rules. It does not change the broader mandate for most swap trading, but it removes a specific compliance burden for a narrower set of transactions.
Who it affects
- Swap Execution Facilities (SEFs)
The Commodity Futures Trading Commission published this proposed rule in the Federal Register; readers should check the original document for specific definitions and comment deadlines before relying on it.
Agency: Commodity Futures Trading Commission
Source: Federal Register — read the official document