CFTC Extends Exemptive Relief To SEFs For Allocation Information Requirements

The CFTC Division of Market Oversight ("DMO") extended previously issued relief (see  CFTC Letter 17-54) to swap execution facilities ("SEFs") from certain requirements related to post-execution allocation information.

As previously covered, SEFs are generally required to collect audit trail data to identify and take action in response to market abuses under CFTC Rule 37.205(a). This requirement is also addressed in CFTC Rule 37.205(b)(2) ("Audit Trail - Transaction history database"). In the request for relief, the parties reiterated that SEFs cannot capture such post-execution allocation data in their audit trail, since trade allocations generally occur between the clearing firm, or the customer, and the derivatives clearing organization. As a result, SEFs do not have access to the relevant data. Even if it were possible to obtain the data, the parties asserted, the technological infrastructure necessary to accommodate transmittal is not currently in place.