CFTC NEWS AND SPEECHES—CFTC approves final rules on swap confirmation requirements for SEFs - 24 April 2024

The CFTC amended Rule 37.6(b) to codify the longstanding staff no-action position related to uncleared swap confirmations.

The CFTC approved final rules to amend its swap execution facility (SEF) regulations related to uncleared swap confirmations to address issues which have been addressed in CFTC staff no-action letters, including the most recent CFTC No Action Letter No. 17-17. In particular, the final rules amend CFTC Regulation 37.6(b) to enable SEFs to incorporate terms of underlying, previously negotiated agreements between the counterparties by reference in an uncleared swap confirmation without being required to obtain the underlying, previously negotiated agreements.

Further, the final rules amend CFTC Regulation 37.6(b) to require the confirmation to take place “as soon as technologically practicable” after the execution of the swap transaction on the SEF for both cleared and uncleared swap transactions. The final rules also amend CFTC Regulation 37.6(b) to make clear the SEF-provided confirmation under CFTC Regulation 37.6(b) shall legally supersede any conflicting terms in a previous agreement, rather than the entire agreement.

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