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The CFTC’s Division of Clearing and Risk is giving Eurex Clearing more time in its bid to become a derivatives clearing organization (DCO).
The division extended the no-action relief granted in CFTC Letter 14-156 to Eurex Clearing AG (Eurex Clearing) and its clearing members that are U.S. persons (U.S. clearing members), CFTC officials say.
With the time-limited, no-action letter, the CFTC division clarifies that it will “not recommend that the commission take enforcement action against Eurex Clearing, an applicant for registration as a derivatives clearing organization (DCO), for failure to register as a DCO pursuant to the requirements of Section 5b(a) of the Commodity Exchange Act (CEA),” according to the CFTC.
The regulator will also not take action against a U.S. clearing member, for “failure to clear certain interest rate swaps (IRS) that are required to be cleared under Section 2(h)(1)(A) of the CEA, through a registered or exempt DCO,” officials say. “This extension will expire at the earlier of the date on which Eurex Clearing becomes registered as a DCO with respect to its IRS clearing business or January 31, 2016.”
The no-action relief is subject to several conditions outlined in the letter from the CFTC, which is available on the regulator’s website.
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