Page 24 - 期货和衍生品行业监管动态（2022年10月）

期货和衍生品行业监管动态

The Commodity Futures Trading Commission today issued an order
simultaneously filing and settling charges against tpSEF, Inc., a registered swap

execution facility (SEF), for failing to comply with the CFTC 15-second delay

requirement for certain required transactions on a SEF order book.

Specifically, the CFTC regulation requires that for orders that are pre-arranged or

pre-negotiated and will result in two customers’ orders being crossed or a broker or

dealer taking the opposite side of a customer’s order, the SEF must subject the broker

or dealer to at least a 15-second delay between the entry of the orders. tpSef failed to

comply with this requirement and failed to enforce its own rule related to the

15-second delay requirement.

The order requires tpSEF to cease and desist from violating the CFTC time delay

regulation, pay a $850,000 civil monetary penalty, and to comply with undertakings
requiring tpSEF to review all transactions on the SEF from August 2020 to the present

for compliance with the SEF’s own rule related to the 15-second delay requirement,

and review its policies and procedures designed to deter and detect future violations

of that rule. The order further requires tpSEF to report its findings to the CFTC within

180 days of the date of the order.

“The CFTC’s time delay requirement is important to ensure a competitive

regime on swap execution facilities, and the CFTC will act to ensure that registered

entities comply with CFTC regulations and their own rules,” said Division of

Enforcement Acting Director Gretchen Lowe.

Case Background

The order finds that tpSEF provides execution services across a full range of

asset classes, including interest rate swaps and credit default swaps. The majority of
swaps executed on tpSEF involve transactions in which a broker or dealer executes

two customers’ orders against each other. According to the order, from October 2016
to July 2020, tpSEF permitted execution of 301 swap transactions that did not comply

with the requirement of a 15-second delay between the entry of each side of the

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