COMMODITY FUTURES TRADING COMMISSION
Extension of Time-Limited No-Action Relief from Certain Recordkeeping Requirements
On December 8th, the Commodity Futures Trading Commission (“CFTC”) issued a press release regarding the no-action letter issued by the Pision of Swap Dealer and Intermediary Oversight and Pision of Market Oversight (Press Release: PR729-15) . The no-action letter extended the relief relating to records of oral communications, which was originally set forth in CFTC Staff Letter No. 14-147, from 2014. The relief in Letter No. 14-147 was set to expire on December 31, 2015.
The 2014 letter granted no-action relief to commodity trading advisors (“CTAs”) that are registered with the CFTC and are members of designated contract markets or of a swap execution facilities from the requirement to record oral communications under CFTC Regulation 1.35(a). Further, the relief is also granted to market participants covered by the rule. Such market participants will not be required to link records of oral and written communications that lead to the execution of a transaction with any particular transaction.
As detailed in the CFTC’s Press Release, the no-action relief is effective immediately and will expire on the effective date of any CFTC action with respect to the information concerning Regulation 1.35(a). Additional information concerning Regulation 1.35(a) and any potential amendments are available on Ruddy Law’s website.
CFTC to Hold Open Meeting
The CFTC’s Chairman, Tim Massad, announced that an open meeting will be held on Wednesday, December 16, 2015. The meeting is being held to consider two proposed rules (Pision of Clearing and Risk system safeguards and Pision of Market Oversight system safeguards testing requirements) and the final rule on margin for uncleared swaps. Multiple options are available for people interested in attending or participating in the meeting. Details regarding the various options are available online, along with the time and location of the open meeting.
NATIONAL FUTURES ASSOCIATION
Annual Affirmation Process
As per CFTC requirements, any person or entity operating pursuant to an exemption or exclusion from commodity pool operator registration under CFTC regulation 4.5, 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5) or an exemption from CTA registration under 4.14(a)(8) is required to annual affirm the applicable notice of exemption or exclusion within sixty (60) days of the calendar year end. Thus the exemption must be affirmed by February 29, 216. Failure to affirm an active exemption or exclusion from CPO or CTA registration will result in the exemption or exclusion being withdrawn on March 1, 2016.
The National Futures Association released Notice to Members I-15-26 on December 1st. The Notice provides instructions on how to complete the process and a list of frequently asked questions and answers regarding the annual affirmation.
For further information about any of the topics covered, please feel free to contact the Ruddy Law Office, PLLC (www.ruddylaw.com) or 202-797-0762.
