Published On: Mon, Jun 30th, 2014

CFTC’s Division of Clearing and Risk Issues No-Action Letter for KRX

Kyungsoo Choi, Chairman & CEO, KRX

Kyungsoo Choi, Chairman & CEO, KRX

The U.S. Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (DCR) on 26 June issued a time-limited no-action letter stating that DCR will not recommend that the Commission take enforcement action against Korea Exchange, Inc. (KRX) for failing to register as a derivatives clearing organization (DCO) pursuant to Section 5b(a) of the Commodity Exchange Act (CEA).

The no-action relief is limited to KRX’s clearing of the proprietary Korean Won-denominated interest rate swaps trades of U.S. clearing members, and is effective until the earlier of December 31, 2014, or the date upon which the Commission either registers KRX as a DCO under Section 5b(a) of the CEA or exempts KRX from registration under Section 5b(h) of the CEA. This no-action letter is consistent with earlier no-action letters granting relief with respect to the clearing of proprietary trades of U.S. clearing members.

About the Author

-

IRP Journal

IRP Journal

Sponsor

OPINION POLL

Poll results are published in our Weekly Newsletter -->
subscribe
All Rights Reserved WIld Wild Web Limited