CFTC Staff Letters
CFTC Staff Letters provides Letters from 2008 and later. For Letters published before 2008 visit the Letters Archive page.
| Description | |
|---|---|
 26-27 |
Letter Type: Advisories Division: COM, DMO, MPD Regulation Parts: 5(d)(3), 40, 40.2, 40.3, 40.5 Tags: Core Principles, Part 40, Prediction Markets, Event Contracts Issuance Date: Description: In light of the evolving prediction market landscape and the emergence of novel event contracts, staff of the Division of Market Oversight (“DMO”) of the Commodity Futures Trading Commission is issuing this advisory to provide staff views regarding the listing and trading of event contracts that are based on whether an individual will say or “mention” certain words, attend or appear at an event, or otherwise interact with another person, which are commonly referred to as “mention market” contracts. These contract types present a heightened risk of manipulation because their settlement turns on the discrete conduct of a person that may be neither independently generated nor externally verifiable. The advisory outlines the limited circumstances in which such contracts may be listed consistently with the Commodity Exchange Act and Commission regulations and provides non-exhaustive examples of factors that DCMs should consider when designing and submitting mention market contracts under Commission Regulations Sections 40.2 or 40.3. The advisory also reminds DCMs of their obligation under Core Principle 3 to list only contracts that are not readily susceptible to manipulation and emphasizes the importance of providing complete, contract-specific analysis when submitting these products under Part 40. Requester(s): CFTC |
| 26-26 |
Letter Type: No-Action Division: DCR Regulation Parts: 1.49, 22.9 Tags: Cleared Swaps, Clearing, Collateral, DCO, FCM, Customer Funds Issuance Date: Description: Eurex Clearing no-action letter regarding the use of Clearstream Banking S.A. as a central securities depository. See also: Request Letter Requester(s): EUREX |
| 26-25 |
Letter Type: No-Action Division: MPD Regulation Parts: 4d, 4k, 3.10, 3.12 Tags: IB, Registration, Associated Persons Issuance Date: Description: MPD no-action position, subject to certain specified conditions, on introducing broker and associated person registration for passive software providers. Requester(s): CFTC |
| 26-24 |
Letter Type: No-Action Division: DMO Regulation Parts: 15, 16, 17, 17.01 Tags: Large Trader, Reporting, Ownership and Control Issuance Date: Description: No-action position concerning application of the Commission’s reporting regulations applicable to exclusively self-cleared contracts to contracts traded by a mix of direct and intermediated participants. See also: Request Letter Requester(s): ELECX |
| 26-23 |
Letter Type: Advisories Division: DMO Regulation Parts: 40.5, 40.6 Tags: Contract Market, Core Principles, DCM, Event Contract, Contract Terms and Conditions Amendments Issuance Date: Description: Staff of the Division of Market Oversight (DMO) are issuing this advisory to remind designated contract markets (DCMs) of their regulatory obligations under the Commodity Exchange Act (“Act”) and Part 40 of the Commission’s regulations when submitting self-certifications for market-maker, liquidity, trading, or incentive programs under CFTC regulations 40.5 and 40.6. This advisory outlines staff expectations regarding both procedural and substantive content for submissions made pursuant to Rule 40.5 and 40.6, including amendments or changes to such programs, and submission procedures. Requester(s): CFTC |
| 26-22 |
Letter Type: Advisories Division: DMO Regulation Parts: 40.2, 40.3 Tags: Contract Market, Core Principles, DCM, SEF, Event Contract, Documentation, Part 40, Contract Terms and Conditions Amendments Issuance Date: Description: Staff of the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission (CFTC) are issuing this advisory to remind designated contract markets (DCMs) of the proper procedures for submitting self certifications of an event contract series. The advisory addresses the practice of submitting broad, template style certifications that combine many potential event contract permutations into a single, vague certification. This practice limits DMO’s ability to determine whether a DCM has supplied all of the information, explanation, and analysis required by Commission Regulation §?40.2 and has adequately evaluated the settlement methodology, data sources, and core-principles compliance of any contract it intends to list on the DCM. The guidance reiterates that broad, template-style certifications should not be submitted under Commission Regulation §?40.2(a) and explains when closely related event contracts may appropriately be certified as a class or submitted for approval under Commission Regulations §§?40.2(d) or 40.3. Requester(s): CFTC |
| 26-21 |
Letter Type: No-Action Division: DMO Regulation Parts: 38.3, 40.1 Tags: DCM, Dormancy Issuance Date: Description: Kraken Derivatives Exchange Inc. (f/k/a Small Exchange, Inc.) – Extension of Time-Limited No-Action Position with respect to Certain Provisions under the Commission’s Dormancy Framework for Registered Entities. See also: Request Letter Requester(s): SMFE |
| 26-20 |
Letter Type: No-Action Division: DMO, DCR, MPD Regulation Parts: 2(h)(1), 2(h)(1)(A), 2(h)(8), 1, 36, 37.3, 43, 50 Tags: Clearing, Clearing Requirement, DCM, DCO, IB, Portfolio, Recordkeeping, Registration, Reporting, Risk, SEF, Swap, Swaps, Trade Execution, Trade Execution Requirement, Part 43, SEF Registration, Swap Execution Facility, Exempt SEF, Part 50, Part 36, Part 1 Issuance Date: Description: Provides, subject to certain conditions, no-action positions for post-trade risk reduction service providers for failure to register as a swap execution facility, and for those entering into swaps that are subject to the swap clearing requirement and trade execution requirement. See also: Request Letter Requester(s): CAPLLC, QTL, TRO |
| 26-19 |
Letter Type: No-Action Division: DMO Regulation Parts: 40.6 Tags: Perpetual Futures, Perpetual Style Futures, Contract Terms and Conditions Amendments Issuance Date: Description: The Commodity Futures Trading Commission’s Division of Market Oversight today announced it has issued no-action relief to designated contract markets seeking to convert their existing perpetual style digital commodity futures contracts into true digital commodity perpetual futures. See also: Request Letter 1 Request Letter 2 Requester(s): BTNL, COINBASE |
| 26-18 |
Letter Type: No-Action Division: DMO Regulation Parts: 38.3, 40.1 Tags: DCM, Dormancy Issuance Date: Description: Cboe Digital Exchange, LLC - Time-Limited No-Action Position with respect to Certain Provisions under the Commission’s Dormancy Framework for Registered Entities See also: Request Letter Requester(s): ERISDCM |