CFTC Extends No-Action Relief from Certain Audit Trail Post-Ex Allocation Information

Traders Magazine Online News, November 9, 2017

John D'Antona Jr.

The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) extended no-action relief to swap execution facilities (SEFs) from the requirement that SEFs capture post-execution allocation information in their audit trail data. This extension will enable the Division to continue to assess audit trail requirements related to post-execution allocation information. This no-action relief shall commence on the date of issuance of this letter and expire on November 15, 2020 at 11:59 pm (Eastern Time).

The Division’s no-action relief is subject to the following conditions:

1. The SEF must have a rule that requires market participants to provide post-execution allocation information to the SEF for particular trades, if the SEF, at the request of the CFTC or otherwise, requests such information; and

2. In the course of a trade practice surveillance or market surveillance investigation into any trading activity involving post-execution allocations, upon such request as stated in condition #1, the SEF must ascertain whether a post-execution allocation was made, and if so, the SEF must request, obtain, and review the post-execution allocation information as part of its investigation.

 

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