MPD Staff Letters

2021

06/29/2021

21-15
Letter Type: Interpretative
Division:MPD
Regulation Parts: 23.100, 23.101
Tags: SD, Swap Dealer, Tangible Net Worth
Description: Staff Interpretation to Swap Dealers electing the Tangible Net Worth method of calculation capital under regulation 23.101.

06/22/2021

21-14
Letter Type: Advisories
Division:MPD
Regulation Parts: 1.17, 23.100, 23.101, 23.102
Tags: FCM, Margin, SD, Swap Dealer, Capital
Description: Advisory to SDs indicating they are not required to obtain approval to use a model to calculate the initial margin on uncleared swaps for purposes of determining the SD’s minimum capital requirement under Commission regulations.

04/13/2021

21-10
Letter Type: No-Action
Division: DMO, MPD
Regulation Parts: 5(d)(4), 1.3, 3.10, 38.250, 38.251, 38.252, 38.253
Tags: DCM, IB, Floor broker, COVID-19
Description: Partial continuation of no-action positions to facilitate physical separation of registrant personnel in response to the COVID-19 pandemic

04/07/2021

21-09
Letter Type:No-Action
Division: DMO, DCR, DOD, MPD
Regulation Parts: 2(h)(8), 23, 23.202, 23.205, 23 Subpart I, 23.500, 23.501, 23.502, 23.503, 23.504, 23.505, 23.506, 23.610, 23 Subpart L, 23.700, 23.701, 23.702, 23.703, 23.704, 37, 38, 43, 50
Tags: SD, Brexit, Cross-border
Description: Brexit-related time limited no-action position with respect to certain swap dealer transaction-level requirements

03/24/2021

21-07
Letter Type: Exemption
Division:MPD
Regulation Parts:1.10, 1.16
Tags: Financial Reports, IB
Description: Exemptive relief to registered Introducing Broker for filing a certified financial report under Regulation 1.10 and Regulation 1.16.

03/23/2021

21-06
Letter Type:No-Action
Division:MPD
Regulation Parts: 3
Tags: Commodity Pool, CPO, CTA, Registration
Description: No-action relief granted from CPO and CTA registration to an entity that uses swaps in connection with its acquisition of biopharmaceutical royalties.

01/19/2021

21-05
Letter Type: No-Action
Division: DMO, MPD
Regulation Parts: 5(d)(4), 5(d)(10), 1.3, 1.35, 38.250, 38.251, 38.252, 38.253, 155.3
Tags: FCM, IB, Recordkeeping, Registration, Floor broker, COVID-19, Audit Trail
Description: Partial continuation of no-action positions to facilitate physical separation of registrant personnel in response to the COVID-19 pandemic

01/19/2021

21-04
Letter Type: No-Action
Division: DMO, MPD
Regulation Parts: 5(d)(4), 5(d)(10), 1.35, 38.250, 38.251, 38.252, 38.253, 38.254, 38.255, 38.256, 38.553
Tags: Recordkeeping, COVID-19, Audit Trail
Description: No-action positions for floor brokers and introducing brokers from oral recordkeeping requirements and designated contract markets from audit trail requirements in continued response to the COVID-19 pandemic

01/12/2021

21-03
Letter Type: Other
Division: MPD
Regulation Parts: 23 Subpart E, 23 Subpart I
Tags: SD, Capital, Model
Description: Approval letter issued to the National Futures Association with regard to Swap Dealer captial model requirements and review program.

01/04/2021

21-02
Letter Type: No-Action
Division: MPD
Regulation Parts: 1.25
Tags: FCM, Customer Funds
Description: Time-Limited No-Action relief to FCMs from Regulation 1.25 for Investments in Securities with an Adjustable Rate of Interest Benchmarked to the Secured Overnight Financing Rate

2020

12/04/2020

20-42
Letter Type: No-Action
Division: DCR, MPD
Regulation Parts: 2(h), 2(h)(1), 23.150 - 23.161, 50 Subpart A, 50.4
Tags: Clearing Requirement, Margin, Brexit, Legacy Swaps
Description: No-action letter permitting market participants to transfer certain swaps to an affiliate without such swaps becoming subject to the Commission’s swap clearing requirement or uncleared swap margin requirements in relation to the end of Brexit transition period

11/24/2020

20-40
Letter Type: No-Action
Division: MPD
Regulation Parts: 4d, 4m, 23 Subpart I, 23.502
Tags: Brexit
Description: This MPD staff letter ensures that existing regulatory relief provided by DSIO pursuant to letters 12-70 and 13-45 affecting EU entities continues to be available for UK entities following the completion of Brexit.

11/24/2020

20-39
Letter Type: No-Action
Division: DMO, MPD
Regulation Parts: 2(h)(8), 5h(a)(1), 23 Subpart F, 23 Subpart I, 23 Subpart J, 37.3
Tags: Brexit
Description: Extension of no-action relief 19-08 granted to ensure the continued availability, following completion of Brexit, of regulatory relief under certain existing CFTC comparability determinations and exemption orders originally issued by the CFTC for EU entities.

10/21/2020

20-34
Letter Type: Advisories
Division: DSIO
Regulation Parts: 4d, 4d(f), 1.11, 1.20, 1.32, 1.55, 22.2, 22.5
Tags: FCM, Segregation, Virtual Currency
Description: DSIO advisory to FCMs regarding accepting and holding customer virtual currency assets in segregation and guidance on practices to consider in developing and maintaining their risk management programs when holding such assets as customer funds.

09/14/2020

20-27
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1.17
Tags: FCM, Minimum financial requirements
Description: Staff no-action position regarding the treatment of a deferred tax liability under Regulation 1.17 which is directly related to intangible assets booked as a result of an acquisition.

09/11/2020

20-26
Letter Type: No-Action
Division: DMO, DSIO
Regulation Parts: 5(d)(4), 5(d)(10), 1, 5, 23, 37
Tags: FCM, IB, SD, SEF, Swap Dealer, Floor broker, RFED, COVID-19
Description: This no-action letter extends until January 15, 2021, the relief previously provided by CFTC Staff Letter 20-19, which, in turn, extended the time period for certain no-action relief provided in CFTC Staff Letters 20-02, 20-03, 20-04, 20-05, 20-06, 20-07, and 20-09, each issued on March 17, 2020 (the ""COVID-19 Letters"")

08/31/2020

20-23
Letter Type: No-Action
Division: DSIO
Tags: De Minimis, Margin, Swap Dealer, Uncleared Swaps, LIBOR, IBOR, Business Conduct Standards, Confirmation, Swap Trading Relationship Documentation
Description: DSIO is providing relief to swap dealers from registration de minimis requirements, uncleared swap margin rules, business conduct requirements, confirmation, documentation, and reconciliation requirements, and certain other eligibility requirements. This relief is to help facilitate the orderly transition from swaps that reference the London Interbank Offered Rate (LIBOR) and other interbank offered rates to swaps that reference alternative benchmarks.

07/23/2020

20-21
Letter Type: No-Action
Division: DSIO
Tags:Swap Dealer, ANE, Cross-border
Description: Withdrawal of staff advisory and no-action relief: transaction-level requirements for non-U.S. swap dealers

07/14/2020

20-20
Letter Type: No-Action
Division: DSIO
Description: Time Extension for No-Action Relief previously granted in response to the COVID-19 pandemic for persons required to submit fingerprints in connection with applying for registration as an associated person or to be listed as a principal of a registrant.

06/09/2020

20-19
Letter Type: No-Action
Division: DMO, DSIO
Description: This letter extends the time period of certain no-action relief provided in CFTC Staff Letters Nos. 20-02, 20-03, 20-04, 20-05, 20-06, 20-07, and 20-09, each issued on March 17, 2020 (the “COVID-19 Letters”) until September 30, 2020.

05/18/2020

20-18
Letter Type: No-Action
Division: DMO, DSIO
Regulation Parts: 23, 23.150, 23.151, 23.152, 23.153, 23.154, 23.155, 23.156, 23.157, 23.158, 23.159, 23.160, 23.161, 43, 45, 46
Tags: Margin, Reporting, Uncleared Swaps
Description: No-action relief from certain Commission regulations with respect to certain warrants listed on foreign exchanges.

05/13/2020

20-17
Letter Type: Advisories
Division: COM, DMO, DCR, DSIO
Regulation Parts: 1.11, 1.55, 1.73, 38, 39.13
Tags: DCM, DCO, FCM, COVID-19, Risk Management, Market Integrity
Description: DMO, DCO, and DSIO issue this advisory to remind DCMs, FCMs, and DCOs that they are expected to prepare for the possibility that certain contracts may continue to experience extreme market volatility, low liquidity and possibly negative pricing.

04/24/2020

20-16
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1a(12)(C), 3.10, 3.12
Tags: COVID-19, Associated Persons, Fingerprinting
Description: No-action position in response to the COVID-19 pandemic for persons required to submit fingerprints in connection with applying for registration as an associated person or being listed as a principal of a registrant

04/22/2020

20-15
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1.17
Tags: FCM, IB, COVID-19, Minimum financial requirements
Description: No-action positions for futures commission merchants and introducing brokers to address net capital treatment of covered loans under the CARES Act in response to the COVID-19 pandemic.

04/14/2020

20-14
Letter Type: No-Action
Division: DSIO
Regulation Parts: 23.151
Tags: Margin, SD, ESM
Description: Revised time-limited no-action position with respect to uncleared swaps with the European Stability Mechanism under Commission regulation 23.150-161

03/31/2020

20-12
Letter Type: No-Action
Division: DSIO
Regulation Parts: 30.5
Tags: Registration, COVID-19, Foreign Broker
Description:  No-action position for foreign brokers exempt pursuant to Commission regulation 30.5 to handle U.S. futures market orders in response to the COVID-19 pandemic

03/20/2020

20-11
Letter Type: No-Action
Division: DSIO
Regulation Parts: 4.7(b)(2), 4.7(b)(3), 4.22, 4.27
Tags: Commodity Pool, CPO, Pool Participant, Reporting, COVID-19
Description: No-action positions for commodity pool operators in response to the COVID-19 pandemic

03/20/2020

20-10
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1.3
Tags: MSP, COVID-19, Insured depository institution
Description: No-action position for excluding certain commodity swaps from inclusion in the major swap participant registration threshold calculation of an insured depository institution

03/17/2020

20-06
Letter Type: No-Action
Division: DSIO
Regulation Parts: 3.3, 23.202
Tags: Annual Report, Recordkeeping, SD, COVID-19
Description: No-action positions for swap dealers to facilitate physical separation of personnel in response to the COVID-19 pandemic

03/17/2020

20-05
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1.35, 5.18
Tags: Recordkeeping, RFED, COVID-19
Description: No-action positions for retail foreign exchange dealers to facilitate physical separation of personnel in response to the COVID-19 pandemic

03/17/2020

20-04
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1.3, 1.35
Tags: IB, Recordkeeping, Registration, Floor broker, COVID-19
Description: No-action positions for floor brokers to facilitate physical separation of personnel in response to the COVID-19 pandemic

03/17/2020

20-03
Letter Type: No-Action
Division: DSIO
Regulation Parts: 1.35, 1.55, 3.3
Tags: Annual Report, FCM, IB, Recordkeeping, COVID-19
Description: No-action positions for futures commission merchants and introducing brokers to facilitate physical separation of personnel in response to the COVID-19 pandemic

03/17/2020

20-02
Letter Type: No-Action
Division: DSIO
Regulation Part: 1.35
Tags: DCM, Recordkeeping, SEF, COVID-19
Description: No-action positions for certain members of designated contract markets and swap execution facilities to facilitate physical separation of personnel in response to the COVID-19 pandemic