CFTC Staff Letters

Advisory on Transition to Portal Filings for Registered Foreign Boards of Trade

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.

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

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).

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).

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.

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.

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.

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.

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