CFTC Announces Eight Exemptions from SEF Registration

​The Commodity Futures Trading Commission (CFTC) announced that it has approved to exempt eight Recognized Market Operators (RMOs) authorized within Singapore from CFTC swap execution facility (SEF) registration requirements, bringing the total number of exempted AEs and RMOs to 13.

The eight RMOs are BGC Partners (Singapore) Ltd., Euronext Markets Singapore Pte Ltd., GFI Group Pte Ltd., ICAP (Singapore) Pte Ltd., Nittan Capital Singapore Pte Ltd., Refinitiv Transaction Services Pte Ltd., TFS Currencies Pte Ltd., and Tullett Prebon (Singapore) Limited.

According to CFTC, Commodity Exchange Act (CEA) 5h(g) authorizes the Commission to grant an exemption from SEF registration if it determines that a foreign swap trading facility is subject to “comparable, comprehensive supervision and regulation on a consolidated basis” by the appropriate governmental authorities in the facility’s home country.

In addition, the CFTC may likewise revoke exempt status when a facility is no longer authorized and/or in good standing in its home country.

On March 13, 2019, the CFTC issued an order determining that the Monetary Authority of Singapore (MAS) regulatory framework for Approved Exchanges (AEs) and RMOs satisfies the standard in CEA section 5h(g) to exempt a SEF from registration with the CFTC. Under the order, MAS is empowered, on an ongoing basis, to request such exemption for facilities meeting certain legal requirements within Singapore. MAS also agreed to notify the CFTC when an AE or RMO no longer satisfies those requirements, and to request the non-compliant facility be removed from exempt status.

Cleartrade Exchange Pte Ltd and Tradition Singapore (Pte) Ltd are the other two RMOs, and Asia Pacific Exchange Pte Ltd, ICE Futures Singapore Pte Ltd, and Singapore Exchange Derivatives Trading Limited are the three AEs, that were previously granted the exemption.