No-Action Relief to JSCC from Reg. 39.6(b)(1) and CEA Sec. 4d(f) and 4m(1)

No-action postion with respect to Part 43 and Part 45 reporting, as well as related sections of Parts 38 and 39, for binary options executed on or pursuant to the rules of QCX, LLC and cleared through QC Clearing LLC.

No-action postion with respect to Part 43 and Part 45 reporting, as well as related sections of Parts 38 and 39, for binary options and variable payout contracts executed on or pursuant to the rules of Railbird Exchange, LLC and cleared through QC Clearing LLC.

No-action postion with respect to Part 43 and Part 45 reporting, as well as related sections of Parts 38 and 39, for binary options executed on or pursuant to the rules of CME and cleared through CME.

The Division of Clearing and Risk of the Commodity Futures Trading Commission hereby withdraws CFTC Staff Advisory 23-06, Staff Advisory Relating to Prime Brokerage Arrangements and Derivatives Clearing Organization Registration.

The Division of Market Oversight and the Division of Clearing and Risk are issuing this advisory to remind DCMs and DCOs of certain Core Principle and regulatory obligations under the Commodity Exchange Act and Commodity Futures Trading Commission regulations related to controls designed to address market volatility.

This staff advisory provides guidance on the materiality or other criteria that the Commodity Futures Trading Commission’s Market Participants Division, the Division of Clearing and Risk, and the Division of Market Oversight will use to determine whether to make a referral to the Division of Enforcement (“DOE”) for self-reported violations, or supervision or non-compliance issues. This guidance furthers the implementation of DOE’s recent advisory, issued February 25, 2025, addressing its updated policy on self-reporting, cooperation, and remediation.