Published On: Thu, May 8th, 2014

CFTC’s Division Of Clearing And Risk Issues No-Action Letter For OTC Clearing Hong Kong Limited

Charles Li CEO HKEx

Charles Li CEO HKEx

The U.S. Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (DCR) issued on 7 May a time-limited no-action letter stating that DCR will not recommend that the Commission take enforcement action against OTC Clearing Hong Kong Limited (OTC Clear) for failing to register as a derivatives clearing organization (DCO) pursuant to Section 5b(a) of the Commodity Exchange Act (CEA) or U.S. clearing participants of OTC Clear for failure to clear certain interest rate swaps and certain non-deliverable forwards through a registered DCO pursuant to Section 2(h)(1)(A) of the CEA and the implementing regulations thereunder.

The no-action relief is effective until the earlier of December 31, 2014 or the date upon which the Commission either registers OTC Clear as a DCO under Section 5b(a) of the CEA or exempts OTC Clear from registration under Section 5b(h) of the CEA.

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