The Commodity Futures Trading Commission (CFTC) yesterday announced that it has granted LatAm SEF temporary registration as a swap execution facility (SEF) in accordance with the trade reporting requirements set out in the Dodd-Frank Act which require greater transparency in the method by which OTC derivatives are offered, processed and sold.
LatAm SEF, which although its designation alludes to sub-equatorial connotations, is a North American entity with its operations based in the state of Delaware, along with a great many institutional firms, and provides a US based multilateral trading platform which brings together multiple third-party buying and selling interests in Mexican Peso interest rate swaps.
The company was one of two firms to have received a no-action relief letter from the CFTC just one month ago, along with GTX SEF, prescribing that a relief period had become effective as of October 17th and provided relief to these two firms against related CFTC action with specific regards to their respective SEF applications until November 19, 2013 at 12:01 am EST by which time the firms status must either have become temporarily approved SEF’s or denied by the CFTC.
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In accordance with standard CFTC procedure with respect to granting temporary SEF status, LatAm will be required to demonstrate continued compliance with all applicable provisions of the Commodity Exchange Act and CFTC regulations, including part 37, and any future regulations, amendments, guidance, and interpretations issued by the CFTC.
As a next step, the CFTC will undertake a substantive review of LatAm’s application for full registration.