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ARTICLE · 07 AUGUST 2025

CFTC Issues No-Action Relief For SEFs On Order Book Obligations

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In a marked departure from its position since 2013, the Commodity Futures Trading Commission (CFTC) issued No-Action Letter 25-24 on July 30, 2025 (Letter 25-24)...

United StatesFinance and Banking
Caron N. Song
Caron N. Song
Carl E. Kennedy
Carl E. Kennedy
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In a marked departure from its position since 2013, the Commodity Futures Trading Commission (CFTC) issued No-Action Letter 25-24 on July 30, 2025 (Letter 25-24), stating that it will not recommend enforcement action against a swap execution facility (SEF) that does not offer a central limit order book, as required under CFTC Regulation 37.3(a)(2), with respect to swap transactions that are not subject to the trade execution requirement under Section 2(h)(8) of the Commodity Exchange Act (CEA).

This no-action relief reflects the CFTC's recognition of how the swaps market has evolved over the past decade and signals a shift in regulatory posture. By moving away from a requirement that has seen little adoption in practice, the CFTC appears increasingly inclined to tailor its regulatory framework to reflect the operational realities of swap execution.

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