The United States Commodity Futures Trading Commission (CFTC) has reinstated the swap execution facility (SEF) status of cryptocurrency company, TeraExchange. The crypto company is among the early firms that received SEF recognition from the regulator. However, the regulator later flagged the exchange as dormant due to no trading activity.
CFTC revokes TeraExchange Swap Execution Facility status
A notice from the US commodity regulator on Monday confirmed the reinstatement of the exchange as a Swap Execution Facility. TeraExchange, meanwhile, is a subsidiary of Tera Group Inc., and also a Delaware corporation. The order from the regulator took effect as of Monday, and it precisely reads:
“The Commodity Futures Trading Commission has issued an Order of Reinstatement to TeraExchange, LLC restoring its registration status as a Swap Execution Facility (SEF). The order, effective today, was issued in accordance with Section 5 of the Commodity Exchange Act and CFTC Regulations 37.3(b) and 37.3(d).”
SEFs registered with CFTC
Following the notice, the exchange gained its status as a Swap Execution Facility from the regulator four years ago. TeraExchange also conducts bitcoin forwards contracts as well as to run a bitcoin price index. However, the exchange was flagged as being dormant because no trading activity was observed on the platform for about three years since its registration with CFTC.
Haven being reinstated as a Swap Execution Facility, the regulator said in the report that there are about 19 SEFs registered with them at the moment. SEFs are CFTC-recognized trading platforms that clear OTC products under the regulatory radar of the regulator.
It is worth mentioning that an issue had previously transpired between the regulator and TeraExchange, where CFTC alleged that the exchange failed to stop wash trading and prearranged trading. However, the trade was only a non-competitive sale executed done to trail Tera’s platform.