Securities Regulation Daily Wrap Up, SWAPS—CFTC staff extends Brexit-related no-action relief for swap dealers and others, (Oct 2, 2026)

By Rebecca E. Hoffman, J.D.

The no-action positions will remain until the end of 2027 unless the CFTC enters an order to replace them in the interim.

The CFTC’s Division of Market Oversight and Market Participants Division have extended no-action positions related to the withdrawal of the United Kingdom from the European Union, also known as Brexit.

This no-action letter supersedes CFTC Letter No. 24-11, which was amended by CFTC Letter No. 26-10.

CFTC Letter No. 26-28, dated October 1, accords with a Joint Statement by U.K. and U.S. authorities on Continuity of Derivatives Trading and Clearing Post-Brexit of February 25, 2019, which was intended to help avoid disruptions in the wake of Brexit.

The current no-action letter, along with other related letters, “were meant to maintain the status quo of the Existing Commission Actions while the Commission worked with the relevant UK authorities to analyze relevant UK law and, where appropriate, replicate the Existing Commission Actions for UK entities,” the letter stated. The “Existing Commission Actions” consist of three comparability determinations, and an order exempting multilateral trading facilities (MTFs) and organized trading facilities (OTFs) from registering as swap execution facilities (SEFs). As stated, the U.K. also took action to preserve regulatory continuity post-Brexit.

Comparability. The letter explained that staff will not recommend enforcement action against registered swap dealers that comply with corresponding U.K. requirements, instead of certain CFTC requirements covered by the existing EU comparability determinations. The Divisions also extended a no-action position under which staff will not recommend enforcement action against certain U.K.-authorized MTFs and OTFs that operate without registering as SEFs.

Similarly, the Division of Market Oversight will not take action against counterparties subject to the trade execution requirement of Commodity Exchange Act Section 2(h)(8), where facilities listed in Appendix A to the letter are involved in that trade.

The relief will apply until December 31, 2027, unless the Commission adopts U.K.-specific comparability determinations or exemptive orders before then.

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