CFTC Approves Final Rule On Post-Trade Name Give-Up On Swap Execution Facilities

Introduction

The CFTC has adopted a final rule to prohibit the controversial practice of post-trade name give-up for swaps that are executed anonymously through a Swap Execution Facility (SEF) and are intended to be cleared. Although the CFTC rejected requests for various exceptions to the prohibition, it did include an exception for package transactions which include a component transaction that is not a swap intended to be cleared.¹

Background

In November of 2018, in the wake of complaints from some market participants, the CFTC requested comments on the practice of post-trade name give-up on SEFs. The CFTC noted that certain SEFs directly or indirectly disclose swap counterparty identities to the parties after matching trades anonymously and questioned the need for this practice with respect to cleared swaps that are anonymously executed on a SEF.² The Commission received 13 comment letters in response to the request for comment, with most of them opposing