CFTC PROPOSES TO CANCEL THE SEF ORDER BOOK REQUIREMENTS

The CFTC (Commodity Futures Trading Commission) proposed to remove the order book requirements for certain swaps and public comments would be accepted within 30 days of the publication of the Federal Gazette. In its regulatory notice of 20 August, the CTC indicated that it was seeking revised feedback on article 37.3 (a) (ii), which provided for the minimum transaction function that the swap enforcement facility (SEF) must provide. According to the proposal, SEF would no longer be required to provide order books for permitted transactions. The current rules require each registered SEF to maintain the order book for all swaps listed on the platform. The Chairman of CTC, Michael Selig, said that the removal of the so-called “over-requirement” would bring the Commission into line with its principles-based derivatives regulation. The proposal applied only to the minimum order book function in paragraph 37.3 (a) (ii), and CFTC indicated that the elimination of the requirement would allow SEF to allocate resources on its platform according to client needs。