The Void Rule No-Action Makes No-Sense
By Kevin McPortland
Originally published on Kevin on the Street
OK, so not all of it. On Friday at 5:55pm (which I guess is better than 11:59p on October 31) the CFTC issues somewhat expected no-action relief for parts of the SEF rules set to take effect on Friday November 1. It focuses on the so-called Void Rule (discussed in an earlier post), and states that trades can in fact be resubmit for trading if they were previously rejected – but only if the reject was not due to a credit issue. That but however is not the only but. In fact the bulk of the no-action document outlines all of the rules the market must follow if they would like to resubmit trades.
In the interest of time (both mine for writing this, and yours for reading this) I’m only going to focus on the one point that I think makes the least sense.
To read the full article, click here.