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 21-15 Letter Type: Interpretative
Division: MPD
Regulation Parts: 23.100, 23.101
Tags: SD, Swap Dealer, Tangible Net Worth
Issuance Date:
Description:

Staff Interpretation to Swap Dealers electing the Tangible Net Worth method of calculation capital under regulation 23.101.


PDF Image 20-43 Letter Type: Interpretative
Division: DMO, DCR
Regulation Parts: 2(h)(1), 2(h)(8)
Tags: Cleared Swaps, Clearing Requirement, Execution, Trade Execution, Trade Execution Requirement
Issuance Date:
Description:

The Divisions do not interpret Sections (2)(h)(1) and 2(h)(8) of the CEA as subjecting to the clearing and trade execution requirements certain swaps transactions entered into by a DCO to reduce and manage the risk associated with a clearing member default.


PDF Image 19-18 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 42.2
Tags: IB, CIP, Customer Identification Program, VB, Voice Broker
Issuance Date:
Description:

The guidance clarifies the CIP and BO requirements applicable to introducing brokers (IBs) under the Bank Secrecy Act (BSA). The guidance provides regulatory clarity to certain IBs who lack access to the information needed to comply with CIP and BO obligations. The guidance eliminates duplicative efforts without impacting money laundering or terrorist financing risk, as the customer due diligence obligations will continue to be performed by the futures commission merchant (FCM) that carries the customer account. The particular IBs subject to this guidance do not introduce their customers’ accounts to FCMs. The IBs do not receive or have access to the customer identification and financial information obtained by FCMs, or the monthly account information issued by FCMs. This guidance clarifies that these IBs are not required to carry out CIP and comply with BO requirements.


PDF Image 18-12 Letter Type: Interpretative
Division: DMO
Regulation Parts: 150.4
Tags: Aggregation, Positions
Issuance Date:
Description:

The staff letter confirms that, for purposes of applying the position limits set forth in CFTC Regulation 150.2, when an institutional investor qualifies for the Regulation 150.4(b)(1) exemption from position aggregation with respect to their investment in a fund, the institutional investor is not required to look through its investment in a fund to aggregate commodity interest positions of an underlying portfolio company in which the institutional investor may hold a 10 percent or greater indirect interest (via its investment in the fund).  


PDF Image 17-68 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1a(10), 4.10(d)(1)
Tags:
Issuance Date:
Description:

Interpretative relief from the definition of “commodity pool” for certain real estate holding companies.


PDF Image 17-65 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 4m(1)
Tags:
Issuance Date:
Description:

A futures commission merchant (FCM), swap dealer (SD), or introducing broker (IB) that receives separate compensation for commodity trading advice is not required to register as a commodity trading advisor, provided that the offered advice is “solely incidental” to the conduct of the FCM’s or SD’s business, or “solely in connection with” the operation of the IB’s business.


PDF Image 17-51 Letter Type: Interpretative
Division: DCR
Regulation Parts: 2(a)(1)(C), 5b(c)(2)(E), 22.3, 39.14
Tags: Cleared Swaps, Collateral, Core Principles, Jurisdiction, SEC, Settlement
Issuance Date:
Description:

Interpretation of the Commodity Exchange Act and Commission regulations regarding the characterization of variation margin payments and all other cash flows for cleared swaps.


PDF Image 16-87 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 23.451
Tags: Swap Dealer
Issuance Date:
Description:

DSIO’s interpretation of Regulation 23.451 clarifying staff’s view that a swap dealer’s contributions for transition or inaugural expenses incurred by a successful candidate are only covered by the rule to the extent that such expenses are incurred by a successful candidate for a position as an official of a governmental Special Entity.


PDF Image 16-69 Letter Type: Interpretative
Division: DCR
Regulation Parts: 39.11, 39.13, 39.15, 39.36
Tags: Financial Resources, Risk, SIDCO
Issuance Date:
Description:

Interpretation of CFTC regulations 39.11(e)(1); 39.13(g)(10); 39.15(c) and (e); and 39.36(f) in light of amendments to Securities and Exchange Commission rule 2a-7.


PDF Image 16-34 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1a(10), 4.10(d)(1)
Tags: Commodity Pool, CPO, CTA
Issuance Date:
Description:

Interpretative relief granted that states that a pool that is only funded and traded by two brothers is not a commodity pool