The Commodity Futures Trading Commission’s Division of Market Oversight and the Division of Clearing and Risk have issued a no-action letter concerning swap data reporting and recordkeeping regulations for certain binary and bounded swap contracts. This decision comes after a request from Bitnomial Exchange, LLC, which is a designated contract market, and Bitnomial Clearinghouse, LLC, a registered derivatives clearing organization.
According to the announcement, the divisions will not recommend that the CFTC take enforcement action against either entity or their participants for failing to comply with specific swap-related recordkeeping requirements or for not reporting data related to event contract transactions executed on or subject to Bitnomial Exchange rules and cleared through Bitnomial Clearinghouse. This relief is provided under the terms set out in the no-action letter.
The scope of this no-action letter is limited. The CFTC noted that it applies only in narrow circumstances and aligns with previous no-action letters granted to other similarly situated designated contract markets and derivatives clearing organizations.
"This decision does not represent a change in policy but ensures consistency with prior actions regarding similar entities," stated the agency.
