Release Number 8421-21

CFTC Staff Amends Existing Brexit-Related Relief to Provide Market Certainty

August 31, 2021

— The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) announced today that it is amending previously granted temporary no-action relief in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU), known as Brexit. 

Specifically, DMO is amending the DMO portion of CFTC Staff Letter No. 20-39 in order to provide relief to three additional UK multilateral trading facilities (MTFs) and an organised trading facility (OTF) and their market participants. The previously provided relief was meant to provide certainty and maintain the status quo of the EU 5h(g) Exemptive Order upon the expiration of the Brexit transition period while the Commission works on a determination for UK authorized MTFs and OTFs under the Commodity Exchange Act (CEA) Section 5h(g).

The amended relief will expire upon the earlier of (i) the effective date of any exemptive order issued by the Commission pursuant to CEA section 5h(g), for MTFs and OTFs authorized within the UK; or (ii) December 31, 2021.

The amended relief does not alter, amend, supersede, or terminate any of the CFTC’s Market Participant Division no-action positions that are included in the CFTC Staff Letter No. 20-39.

The CFTC has taken a number of other steps to facilitate a smooth transition upon withdrawal of the UK from the EU. For example, in February 2019, the CFTC, the Bank of England and its Prudential Regulation Authority, and the Financial Conduct Authority issued a statement regarding the continuity of derivatives trading and clearing post-Brexit. [See CFTC Press Release No. 7876-19]