CFTC exempts FX swap market from pre-trade disclosures

Published on:

The US Commodity Futures Trading Commission’s (CFTC) division of swap dealer and intermediary oversight has exempted swap dealers and leading swap participants from the requirement to disclose pre-trade mid-market marks to counterparties in certain FX transactions.

The regulator made the announcement late last week, after issuing a no-action letter on December 6. The exemption applies to all “covered FX transaction” provided that all real-time tradable bids and offers are available electronically in the market place to a counterparty, and that the counterparty to the FX transaction agrees in advance, in writing, that the swap deal or leading swap participant need not disclose a pre-trade mid-market price.