CFTC Extends Exemptive Relief To SEFs From Certain Audit Trail Data Requirements

The CFTC Division of Market Oversight ("DMO") extended previously issued relief (see CFTC Letter 15-68) exempting swap execution facilities ("SEFs") from the requirement to capture post-execution information in their audit trail data.

Under CFTC Rule 37.205(a), SEFs are generally required to collect audit trail data in order to identify and take action in response to market abuses. This requirement is also addressed in CFTC Rule 37.205(b)(2). 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 data. Even if it were possible to obtain, the parties asserted, the technological infrastructure necessary to accommodate transmittal is not currently in place.