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CFTC exempts swaps trades on NGX from overall swap dealing calculation

twitterlogoThe CFTC recently issued no-action relief to traders on Canada’s Natural Gas Exchange, saying that swaps trades transacted on the exchange would not count toward the overall calculation of a trader’s exemption.

The exemption affects firms that transact less than $8 billion in swaps from the CFTC’s swap dealer definition. The relief is applicable to all swaps transacted on NGX before March 31, 2013, Platts reports.

In February, NGX applied to the CFTC to register as a foreign board of trade, though the application is still under review. NGX will, in the meantime, continue to operate as an exempt commercial market.

The CFTC said that it would “not recommend that the commission take an enforcement action against any person for failure to include a swap executed on NGS, during that time period, in its calculation of the aggregate gross notional amount of swaps connected with its swap dealing activity.”

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