CFTC’s Division Of Clearing And Risk Issues Time Limited No-Action Letter For LCH.Clearnet Ltd And Its Clearing Members

The Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (DCR) today issued a time limited no-action letter stating that DCR will not recommend that the Commission take enforcement action against LCH.Clearnet Ltd (LCH) for clearing certain swaps (DCM/SEF Swaps) executed on, or subject to the rules of, designated contract markets or swap execution facilities, and will not recommend enforcement action against LCH’s clearing members for clearing DCM/SEF Swaps through LCH.

This relief will be effective until the earlier of (1) March 31, 2014, or (2) the date upon which the Commission approves or denies LCH’s application for an amended DCO registration order to permit it to clear DCM/SEF Swaps.