CFTC Staff Letters

CFTC Staff Letters provides Letters from 2008 and later. For Letters published before 2008 visit the Letters Archive page.

PDF Description
PDF Image 21-14 Letter Type: Advisories
Division: MPD
Regulation Parts: 1.17, 23.100, 23.101, 23.102
Tags: FCM, Margin, SD, Swap Dealer, Capital
Issuance Date:
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.

PDF Image 21-13 Letter Type: No-Action
Division: DCR
Regulation Parts: 39.15, 39.21
Tags: Clearing, Fully-collateralized, Public Information
Issuance Date:
Description:

No-action relief from specified Part 39 regulations applicable to derivatives clearing organizations due to CX Clearinghouse, L.P.'s fully-collateralized clearing model.

PDF Image 21-12 Letter Type: No-Action
Division: DMO, DOD
Regulation Parts: 43, 45
Tags: Swaps
Issuance Date:
Description:

Relief under Parts 43 and 45 to entities submitting swaps for clearing by derivatives clearing organizations (DCOs) operating under CFTC exemptive orders or no-action relief provided by CFTC staff.

PDF Image 21-11 Letter Type: No-Action
Division: DMO, DCR, DOD
Regulation Parts: 38.8, 38.10, 38.951, 39.20, 43, 45
Tags: Reporting, Swap, Swap Data, Swaps, Event Contract, Part 43, Binary Option
Issuance Date:
Description:

Relief from Part 43 and 45 reporting, as well as related sections of Parts 38 and 39, for binary options executed on or pursuant to the rules of Kalshi and cleared through LedgerX.

PDF Image 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
Issuance Date:
Description:

Partial continuation of no-action positions to facilitate physical separation of registrant personnel in response to the COVID-19 pandemic

PDF Image 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
Issuance Date:
Description:

Brexit-related time limited no-action position with respect to certain swap dealer transaction-level requirements

PDF Image 21-08 Letter Type: Other
Division: DCR
Regulation Parts: 39.13
Tags: Initial margin, Clearing, DCO, FCM, Margin, Risk Management
Issuance Date:
Description:

The Division of Clearing and Risk (“DCR”) recently received several inquiries regarding the implementation of amendments to Regulation 39.13(g)(8)(ii) that the Commission adopted on January 27, 2020 with a compliance date of January 27, 2021. In particular, some market participants asked whether it would be permissible under Regulation 39.13(g)(8)(ii) as revised for a futures commission merchant (FCM) to assess whether a customer account presents a “heightened risk profile,” and is therefore subject to additional initial margin requirements, based on whether the account is a hedging or speculative account if the FCM concludes that is an appropriate method of assessing risk. DCR is confirming that it would be permissible for an FCM to do so, provided that the FCM maintains policies and procedures that demonstrate this is the risk analysis the FCM will use when determining whether to collect additional initial margin from a given customer.

PDF Image 21-07 Letter Type: Exemption
Division: MPD
Regulation Parts: 1.10, 1.16
Tags: Financial Reports, IB
Issuance Date:
Description:

Exemptive relief to registered Introducing Broker for filing a certified financial report under Regulation 1.10 and Regulation 1.16.

PDF Image 21-06 Letter Type: No-Action
Division: MPD
Regulation Parts: 3
Tags: Commodity Pool, CPO, CTA, Registration
Issuance Date:
Description:

No-action relief granted from CPO and CTA registration to an entity that uses swaps in connection with its acquisition of biopharmaceutical royalties.

PDF Image 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
Issuance Date:
Description:

Partial continuation of no-action positions to facilitate physical separation of registrant personnel in response to the COVID-19 pandemic