CFTC Staff Issues Supplemental Letter Regarding No-Action Position on Reporting, Recordkeeping Requirements

WASHINGTON - The Commodity Futures Trading Commission's Division of Market Oversight and Division of Clearing and Risk today announced they have taken a no-action position regarding swap data reporting and recordkeeping regulations.

The divisions will not recommend the Commission initiate an enforcement action against Railbird Exchange, LLC, a designated contract market, and Bitnomial Clearinghouse, LLC, a derivatives clearing organization, or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with fully collateralized event contract transactions executed on or subject to the rules of Railbird and cleared through Bitnomial.

Additionally, the supplemental letter removes the condition in CFTC Letter No. 25-26 that prohibited Railbird's participants from clearing contracts through a third-party clearing member. This no-action position is subject to the terms of the no-action letter issued today.

This position is in response to a request from Railbird and Bitnomial, to modify CFTC Letter No. 25-26 to cover transactions cleared through Bitnomial and remove the condition prohibiting third-party clearing by participants.