Complinet logo
Contact us

CFTC no-action letter gives relief on forex pre-trade mid-market mark

Dec 06 2012 Compliance Complete news team

The Commodity Futures Trading Commission on Thursday issued a no-action letter that provides swap dealers and major swap participants with relief from the requirement to disclose the pre-trade mid-market mark to counterparties in certain foreign exchange transactions involving major currencies. The disclosure requirements prescribed in Regulation 23.431 state, among other things, that a swap dealer or major swap participant must disclose to certain counterparties the pre-trade mid-market mark of a swap. The no-action letter issued on Thursday by the CFTC's Division of Swap Dealer and Intermediary Oversight states that a swap dealer or major swap participant need not disclose the pre-trade mid-market mark for a covered forex transaction, provided that: (1) real-time tradeable bid and offer prices for the transaction are available electronically, in the marketplace, to the counterparty; and (2) the counterparty to the transaction agrees in advance, in writing, that the swap dealer

Already have an account?

Log in

Want to read this article?

Click here for a free 14 day trial