Release Number 8734-23

CFTC Staff Releases Request for Comment on the Impact of Affiliations of Certain CFTC-Regulated Entities

June 28, 2023

— Staff of the Divisions of Market Oversight, Clearing and Risk and Market Participants today issued a request for comment to better inform them of potential issues that may arise because of affiliations of CFTC-registered entities with market participants. [Note: This comment period has been extended to September 28, 2023. See CFTC Press Release No. 8765-23.]

The request specifically asks about affiliations between derivatives clearing organizations (DCOs), designated contract markets (DCMs), or swap execution facilities (SEFs) with intermediaries, such as futures commission merchants (FCMs), or other market participants. Under the Commodity Exchange Act and CFTC regulations, DCOs, DCMs, and SEFs have responsibilities for supervising their participants. An affiliation with an intermediary or other market participant raises questions as to how these supervisory responsibilities will be carried out. The 37-question request for comment seeks to better inform the staff’s understanding of these issues and seeks input on possible mitigating measures.  

Comments will be accepted for 60 days after publication on