The U.S. Commodity and Futures Trading Commission has "clarified" its approach to U.S. market participants trading on a European Multilateral Trading Facility (MTF), following talks with the European Commission and the Financial Conduct Authority. Despite the publication of a No-Action Letter (PDF) last week that made some changes to the No-Action Letter (PDF) that the CFTC published in February, the global over-the-counter derivatives industry remains concerned with what it regards as the U.S. regulator's excessively extraterritorial approach in its implementation of the Dodd-Frank Act's provisions governing the swaps markets, including the regulation of Swap Execution Facilities (SEFs). According to lawyers however, the evolving U.S. approach to recognizing the equivalence of other regimes' rules is not unlike that of European national regulators (the FCA excepted), or in the European Market Infrastructure Regulation (EMIR). The CTFC's February letter provided conditional, temporary
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