Wednesday December 6 2017
News Source: Global Exchanges
Focus: Derivative Market Segment
Type: General
It has been reported that on 5th December 2017,the European Commission adopted an Implementing Decision on the equivalence of the legal and supervisory framework applicable to swap execution facilities (SEFs) and designated contract markets (DCMs) in the US. An Annex to the decision lists the 23 SEFs and 14 DCMs considered equivalent. The decision will enter into force on the day following its publication in the Official Journal of the EU.
When it enters into force, the decision means that the MiFIR derivatives trading obligation could be met by trading on SEFs or DCMs. This would avoid the scenario of an Over-The-Counter (OTC) derivative contract having to be traded on both an EU and a US trading venue.
The Commodity Futures Trading Commission (CFTC) staff will on the 5th December 2017, recommend that the CFTC issues an order of exemption so that Multilateral Trading Facilities (MTFs) and Organised Trading Facilities (OTFs) authorised in the EU would not be subject to the CFTC’s SEF registration requirements. This order would mean that the CFTC’s trade execution requirement would be met by trading on the relevant MTFs or OTFs.
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