CFTC-PR-8869-24 (Feb. 22, 2024)
CFTC Staff Issues No-Action Letter Regarding Pre-Trade Mid-Market Mark for Certain Interest Rate Swaps Referencing SOFR
Washington, D.C. — The Commodity Futures Trading Commission’s Market Participants Division (MPD) today issued a no-action letter in relation to the requirement in Regulation 23.431 that swap dealers and major swap participants (swap entities) disclose to certain counterparties the Pre-Trade Mid-Market Mark (PTMMM) of a swap.
The no-action position issued today states that MPD will not recommend the Commission take an enforcement action against a registered swap entity for its failure to disclose the PTMMM to a counterparty in certain interest rate swaps referencing the Secured Overnight Financing Rate (SOFR) that are identified in the no-action letter, provided that: (1) real-time tradeable bid and offer prices for the swap are available electronically, in the marketplace, to the counterparty; and (2) the counterparty to the swap agrees in advance, in writing, that the registered swap entity need not disclose a PTMMM for the swap.
Date: Feb. 22, 2024
Date Accessed: Aug. 1, 2024
Source URL: https://www.cftc.gov/PressRoom/PressReleases/8869-24
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