Release Number 7111-15

January 23, 2015

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Relief to Introducing Brokers for Certain Financial Reporting Requirements

Washington, DC — The U.S. Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight today issued no-action relief to certain introducing brokers (IBs) with respect to net capital and financial reporting requirements under Commission Regulations 1.10 and 1.17, respectively.

The conditioned relief permits foreign-domiciled IBs to file audited and unaudited form 1-FR-IBs, as applicable, using local accounting principles in effect where the IB is domiciled in lieu of U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards. In addition, eligible foreign-domiciled IBs will not be required to apply certain foreign currency capital charges under Regulation 1.17 and staff guidance.

The relief also permits IBs to recognize as a current asset for adjusted net capital under Regulation 1.17 commission receivable balances which are promptly billed and due from their over-the-counter swap customers.



Last Updated: January 23, 2015