CFTC announced the issuance of an order exempting certain derivatives trading facilities (electronic trading platforms, or ETPs) regulated by JFSA from the requirement to register with CFTC as swap execution facilities (SEFs). JFSA also announced that it would facilitate the authorization process of "Authorized Electronic Over-the-Counter (OTC) Derivatives Transactions etc. Business Operators" (Foreign ETP Operators) for CFTC-authorized derivative platforms that seek to be Foreign ETP Operators on the premise that such entities are subject to the regulation and supervision of CFTC.
The Commodity Exchange Act (CEA) section 5h(g) empowers CFTC to grant an exemption from the SEF registration requirement when it determines that a facility is subject to comparable, comprehensive supervision and regulation on a consolidated basis by SEC, a prudential regulator, or the appropriate governmental authorities in the home country of the facility. ETPs that have been granted an exemption from SEF registration under section 5h(g), as listed in the order, may be used by swap counterparties to comply with the trade execution requirement under the CEA section 2(h)(8) and may also be used to trade swaps that are not subject to the trade execution requirement.
Article 60-14 of the Financial Instruments and Exchange Act (No. 25 of 1948) (FIEA) empowers JFSA to permit certain foreign derivatives platforms to qualify as Foreign ETP Operators. Under the Japanese regulatory framework, Foreign ETP Operators shall not be examined on the specific ways they operate as long as their business is operated at levels deemed virtually equal to those required in Japan, given that they are essentially under the supervision of overseas authorities. JFSA will facilitate the authorization process for CFTC-authorized derivatives platforms that seek to be Foreign ETP Operators on the premise that they are subject to the regulation and supervision of the CFTC.
Keywords: Americas, Asia Pacific, US, Japan, Banking, Securities, Swap Execution, Trading Venues, OTC Derivatives, JFSA, CFTC
Previous ArticleBoE Report on Evaluation of Approach to Concurrent Stress Testing
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.
MAS updated rules for new housing loans by banks and finance companies.
HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.