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 15-51 Letter Type: Interpretative
Division: DMO, DCR
Regulation Parts: 2(h)(8), 37.3
Tags: Registration, Trade Execution
Issuance Date:
Description:

DCR and DMO Interpretation regarding use by a derivatives clearing organization of a firm or forced trades process. Request for Interpretation Regarding the Applicability of Commission Regulation 37.3(a)(1) and Section 2(h)(8) of the Commodity Exchange Act to Derivatives Clearing Organizations and their Clearing Members.


PDF Image 15-50 Letter Type: Interpretative
Division: DCR
Regulation Parts: 39, 39 Subpart C, 39.40
Tags: DCO
Issuance Date:
Description:

The CFTC Division of Clearing and Risk (the Division) interprets Part 39 (subparts A, B and C) to incorporate all of the standards set forth in the PFMIs and, indeed, to be fully consistent with the PFMIs. This position is supported by CFTC Regulation 39.40, which states that [t]his subpart C is intended to establish standards which, together with subparts A and B of this part [Part 39 of CFTC regulations], are consistent with Section 5b(c) of the Act and the Principles for Financial Market Infrastructures… and should be interpreted in that context.


PDF Image 15-27 Letter Type: Interpretative
Division: DCR
Regulation Parts: 2(h)(7)(C)(iii)
Tags: Clearing Requirement
Issuance Date:
Description:

The Division of Clearing and Risk published a letter interpreting Section 2(h)(7)(C)(iii) of the Commodity Exchange Act.


PDF Image 14-138 Letter Type: No-Action, Interpretative
Division: DSIO
Regulation Parts: 30.7
Tags: Foreign Future, Foreign Option
Issuance Date:
Description:

No-action relief and interpretation of certain aspects of Regulation 30.7 with respect to the holding of customer funds in accounts located outside of the U.S.


PDF Image 14-132 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 23.701, 23.704
Tags: Segregated, Segregation
Issuance Date:
Description:

Staff interpretation regarding notification of the right to segregation of initial margin in uncleared swap transactions and quarterly reporting under Commission Regulations 23.701 and 23.704


PDF Image 14-129 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1.17, 1.22, 22.2, 30.7
Tags: Cleared Swaps, Collateral, Customer, FCM, Foreign Future, Foreign Option, Funds, IB
Issuance Date:
Description:

Staff issued an interpretation providing that a futures commission merchant (FCM) may credit a customer’s trading account for a margin payment upon the FCM’s initiation of a withdrawal from the customer’s bank account using the Automated Clearing House (ACH) payment processing system. The FCM also may consider such pending margin payments in computing its regulatory capital.


PDF Image 14-113 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1a(10), 4.10
Tags: Commodity Pool, CPO, CTA
Issuance Date:
Description:

The Division issued an interpretation of CEA Section 1a(10) and Regulation 4.10(d), both of which define the term “commodity pool,” which will permit wholly owned subsidiaries of a single life insurance company to contribute their general account assets to a single vehicle formed by them, and will permit the vehicle to invest directly or indirectly in commodity interests without being deemed a commodity pool.


PDF Image 14-110 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 30.7
Tags: Foreign Future, Foreign Option
Issuance Date:
Description:

Interpretation of certain aspects of Regulation 30.7.


PDF Image 14-40 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1.16
Tags:
Issuance Date:
Description:

Interpretation with respect to certain auditor independence requirements under Commission Regulation 1.16.


PDF Image 14-05 Letter Type: Interpretative
Division: DCR
Regulation Parts: 39.11, 39.12, 39.13, 39.14, 39.16, 39.21
Tags: Eligibility, Financial Resources, Public Information, Risk, Settlement
Issuance Date:
Description:

North American Derivatives Exchange, Inc. (Nadex) requested interpretative guidance concerning certain provisions of the Commission’s Part 39 regulations applicable to derivatives clearing organizations due to the unique nature of Nadex’s business model.