CFTC exempts FX swap market from pre-trade disclosures
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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.