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 23-16 Letter Type: Advisories
Division: DMO, DCR, MPD
Regulation Parts: 37, 38, 39
Tags: Affiliates, Compliance, DCM, DCO, SEF
Issuance Date:
Description:

The advisory reminds designated contract markets, derivatives clearing organizations, and swap execution facilities that have an affiliated intermediary or trading entity, as well as the affiliated intermediary or trading entities themselves, of their obligations to ensure compliance with existing statutory and regulatory requirements with this affiliate relationship in mind. The advisory also informs market participants that CFTC staff closely scrutinizes how these types of affiliate relationships are addressed when reviewing applications for registration or designation; conducting examinations and rule reviews; and through other supervisory means. Market participants are invited to contact the relevant Division if there are concerns regarding these types of affiliate relationships.


Requester(s): CFTC
PDF Image 23-07 Letter Type: Advisories
Division: DCR
Regulation Parts: 39
Tags: Clearing, Digital Assets
Issuance Date:
Description:

AO Advisory on Risks Associated with Expansion of DCO Clearing of Digital Assets


Requester(s): CFTC
PDF Image 23-06 Letter Type: Advisories
Division: DCR
Regulation Parts: 1a(15)
Tags: Clearing, DCO, Prime Brokerage
Issuance Date:
Description:

Advisory that encourages entities using prime brokerage arrangements that provide credit substitution on a centralized basis to examine the specific nature of their activities for the potential need to register as a derivatives clearing organization (DCO).


Requester(s): CFTC
PDF Image 22-17 Letter Type: Advisories
Division: MPD
Regulation Parts: 3.3
Tags: Annual Report, CCO, Swap Dealer
Issuance Date:
Description:

Advisory to non-U.S. swap dealers and non-U.S. major swap participants relying on substituted compliance under the terms of an applicable CFTC entity-level comparability determination with respect to the filing of an annual chief compliance officer report required pursuant to Commission regulation 3.3(f).


Requester(s): CFTC
PDF Image 22-06 Letter Type: Advisories
Division: DOD, MPD
Regulation Parts: 43.3, 45.14
Tags: Reporting, Swap Data
Issuance Date:
Description:

DOD is issuing an advisory setting forth instructions for notifying staff pursuant to Parts 43 and 45 when a swap execution facility, designated contract market, or reporting counterparty determines that it is unable to timely correct an error. In this advisory, staff is also highlighting a specific type of error concerning swaps that remain erroneously open at swap data repositories despite having been terminated.


Requester(s): CFTC
PDF Image 21-19 Letter Type: Advisories
Division: DMO
Regulation Parts: 5h(a)(1), 37.3
Tags: Registration, SEF
Issuance Date:
Description:

The Division of Market Oversight of the Commodity Futures Trading Commission is issuing this advisory to remind entities of the swap execution facility registration requirements set forth in the Commodity Exchange Act and Commission regulations and to highlight certain scenarios where entities may be required to register.


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 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
Issuance Date:
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.


PDF Image 20-28 Letter Type: No-Action, Advisories
Division: DCR
Regulation Parts: 1.56, 39.13
Tags: Initial margin, DCO, Disclosure, FCM, Margin, Guarantees Against Loss, Risk Management
Issuance Date:
Description:

DCR DSIO Issue Supplemental Advisory Grant of No-Action Relief from 1.56 and 39.13(g)(8)(iii)


PDF Image 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
Issuance Date:
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.