December 23, 2013

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Relief Regarding Introducing Brokers’ Compliance with Certain Financial Reporting and Capital Computation Requirements

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission) Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a no-action letter that provides relief for certain Introducing Brokers (IBs) registered with the Commission from certain financial reporting and capital computation requirements. Part of the no-action relief is time-limited to newly registered IBs for the fiscal years ending on or before December 31, 2013.

The relief provided in the letter states that DSIO will not recommend an enforcement action for certain IBs from compliance with financial reporting requirements imposed by Commission regulations concerning three separate areas: (1) treatment of liabilities to employees contingent upon the receipt of certain commission receivables when calculating the minimum net capital requirement, (2) the use of International Financial Reporting Standards, as opposed to the required U.S. Generally Accepted Accounting Standards, for certified and unaudited financial statements by certain qualified Foreign IBs, and (3) the permitted delayed filing of certified financial statements for IBs whose registration was approved by the National Futures Association during the period October 1, 2013 through December 31, 2013.

Last Updated: December 23, 2013