RegStream

Raw view of specific publication

Become a member today and discover RegStream features

We strive to provide our clients with top notch tools to enable better compliance Start Now

CFTC Staff Provides No-Action Relief to Registrant from SEF Reinstatement Requirements

Washington, D . C . — The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) today granted temporary no-action relief to Tassat Derivatives LLC, a CFTC-registered swap execution facility (SEF), from SEF reinstatement requirements under CFTC Regulation 37 . 3(d), subject to certain conditions .

On November 6, 2019, the CFTC issued a transfer order approving the transfer of trueEX LLC’s SEF registration to its affiliate, Tassat . [See CFTC Press Release No . 8076-19] In addition to the SEF registration, Tassat acquired all work product related to the development of a physically-deliverable Bitcoin swap contract, which Tassat intends to list . Since the transfer, Tassat has been operational and in compliance with all relevant provisions of the Commodity Exchange Act (CEA) and CFTC regulations pertaining to SEFs . However, since the issuance of the transfer order, Tassat states it has encountered internal and external delays impacting the listing of its Bitcoin swap contract . Among other things, Tassat notes delays resulting from the COVID-19 pandemic . Tassat continued to prepare for the launch of its Bitcoin swap contract, however, on August 1, 2020, pursuant to CFTC Regulation 40 . 1 (f), Tassat was deemed dormant because it had no trading for a period of 12 consecutive months . As a result, Tassat is required to seek reinstatement of its SEF registration in order to continue to operate .

Tassat requested relief from the reinstatement requirements under CFTC Regulation 37 . 3(d), to enable Tassat to list its contract for trading prior to a CFTC decision on reinstatement of its registration . Tassat stated that it intends to list the Bitcoin swap contract in the fourth quarter of 2020 .

The temporary no-action relief will end at the time the CFTC makes a determination with respect to Tassat’s application for reinstatement . Tassat agreed to file its reinstatement application with the CFTC no later than one month from the date of issuance of the relief . During the period of relief, Tassat agreed to continue to comply with all applicable provisions of the CEA and CFTC regulatory requirements .

Under the no-action relief, and subject to the aforementioned conditions among others, DMO will not recommend the CFTC commence an enforcement action against Tassat for failing to reinstate its SEF registration pursuant to CFTC Regulation 37 . 3(d), prior to Tassat listing its certified Bitcoin swap contract, or against any Tassat participant who trades the contract upon such listing .

Disclaimer: RegRadar is not endorsed nor affiliated with the source authority. This material does not constitute any advice. This material is machine translated and does not constitute an official translation by the source authority. Please note that the information can be obtained free of charge through the source website.