The Division of Market Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission”) is issuing this letter in response to a no-action letter request from Coinbase Derivatives, LLC (“COIN”), a designated contract market (“DCM”), submitted pursuant to Commission regulation 140.99. COIN seeks a no-action position with respect to certain requirements under Commodity Exchange Act (“CEA”) Section 5(d)(20), and Commission regulation 38.1051(c) addressing backup facilities.

Guidance clarifying the expenses that must be included and those that can be reasonably excluded in a DCM’s or SEF’s calculation of projected operating costs.