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 .
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 .
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 .
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