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Email On May 17, the staff of Commodity Futures Trading Commission (“CFTC”) Division of Clearing and Risk (“DCR”) issued an advisory (“Advisory”) that encourages entities using prime brokerage (“PB”) arrangements that provide credit substitution on a centralized basis on swap execution facilities (“SEFs”) to assess whether these activities qualify as those of a derivatives clearing organization (“DCO”) and are therefore subject to registration with the CFTC. DCR notes that the Advisory was prompted by recently proposed arrangements on SEFs where a single PB would be providing credit substitution to multiple SEF participants, which, in DCR’s view, would qualify these PBs as DCOs that must register. https://www.cadwalader.com/resources/articles/cftc-issues-advisory-on-prime-brokerage-arrangements-on-sefs-and-dco-registration-requirements