Release Number 8339-20

CFTC Staff Extends No-Action Relief for Shanghai Clearing House

December 21, 2020

— The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) today issued a no-action letter extending the relief originally provided to Shanghai Clearing House (SHCH) in CFTC Letter No. 16-56, which — pursuant to CFTC Letter No. 18-18 — will expire on July 31, 2021. The extension ends the earlier of July 31, 2022 or the date on which the CFTC exempts SHCH from registration as a derivatives clearing organization (DCO).

The extension provides that DCR will not recommend the CFTC take enforcement action against SHCH for failing to register as a DCO as required by section 5b(a) of the Commodity Exchange Act in light of SHCH’s pending application for an exemption from registration as a DCO. The relief issued expands previously issued relief to permit SHCH to clear all swaps accepted for clearing by SHCH for the proprietary trades of SHCH clearing members that are U.S. persons or affiliates of U.S. persons.