Release Number 8562-22

CFTC’s Division of Clearing and Risk Issues No-Action Letter for Shanghai Clearing House

July 26, 2022

Washington, D.C. — The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) today issued a no-action letter providing that DCR will not recommend the CFTC take enforcement action against SHCH for failing to register as a derivatives clearing organization (DCO) as required by Section 5b(a) of the Commodity Exchange Act in light of SHCH’s recently submitted updated application for an exemption from registration as a DCO. Today’s no-action letter extends CFTC Letter 16-56, which expires July 31, 2022. The extension will last until the earlier of July 31, 2023 or the date on which the CFTC exempts SHCH from registration as a DCO. The letter states that DCR does not plan to issue further extensions.

Like CFTC Letter 16-56, today’s no-action letter is limited to SHCH’s clearing of the proprietary trades of U.S. clearing members and their affiliates.