CFTC Extends No-Action Relief For Swaps Executed As Part Of Certain Package Transactions

On October 14, 2015, the Division of Market Oversight ("DMO") for the U.S. Commodity Futures Trading Commission ("CFTC") issued an additional extension of no-action relief for swaps executed as part of "package" transactions.¹  This relief provides additional time for the CFTC to resolve lingering market infrastructure challenges associated with limited execution methods for swaps subject to mandatory trade execution by permitting counterparties to execute package transactions using additional methods of execution through November 15, 2016.  This is the fourth time that the DMO has delayed compliance with the trade execution requirement for certain package transactions and highlights the difficulty with implementing the CFTC's framework for mandatory trading on designated contract markets ("DCM") or swap execution facilities ("SEF").