CFTC Issues No-Action Letter on Pre-Trade Mid-Market Mark Requirements for Swap Dealers

The Commodity Futures Trading Commission's (CFTC) Market Participants Division has issued a no-action letter concerning the Pre-Trade Mid-Market Mark (PTMMM) requirement under Regulation 23.431 for registered swap dealers and major swap participants. The PTMMM requirement was initially addressed by CFTC staff in 2012 shortly after its compliance date took effect. At the time, regulators determined that the mandatory pre-trade disclosure provided limited informational value to counterparties while creating substantial and costly operational challenges for market participants. Under the latest guidance, the division provides a no-action position consistent with previous staff letters issued for certain specified types of swaps, while confirming that the relief is not limited strictly to those specific swap categories. The action offers continued regulatory flexibility and compliance clarity for swap entities operating in the derivatives markets.