CFTC Staff Letters

CFTC Staff Letters provides Letters from 2008 and later. For Letters published before 2008 visit the Letters Archive page.

PDF Description
PDF Image19-18 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 42.2
Tags: IB, CIP, Customer Identification Program, VB, Voice Broker
Issuance Date:
Description:

The guidance clarifies the CIP and BO requirements applicable to introducing brokers (IBs) under the Bank Secrecy Act (BSA). The guidance provides regulatory clarity to certain IBs who lack access to the information needed to comply with CIP and BO obligations. The guidance eliminates duplicative efforts without impacting money laundering or terrorist financing risk, as the customer due diligence obligations will continue to be performed by the futures commission merchant (FCM) that carries the customer account. The particular IBs subject to this guidance do not introduce their customers’ accounts to FCMs. The IBs do not receive or have access to the customer identification and financial information obtained by FCMs, or the monthly account information issued by FCMs. This guidance clarifies that these IBs are not required to carry out CIP and comply with BO requirements.

PDF Image18-12 Letter Type: Interpretative
Division: DMO
Regulation Parts: 150.4
Tags: Aggregation, Positions
Issuance Date:
Description:

The staff letter confirms that, for purposes of applying the position limits set forth in CFTC Regulation 150.2, when an institutional investor qualifies for the Regulation 150.4(b)(1) exemption from position aggregation with respect to their investment in a fund, the institutional investor is not required to look through its investment in a fund to aggregate commodity interest positions of an underlying portfolio company in which the institutional investor may hold a 10 percent or greater indirect interest (via its investment in the fund).  

PDF Image17-68 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1a(10), 4.10(d)(1)
Tags:
Issuance Date:
Description:

Interpretative relief from the definition of “commodity pool” for certain real estate holding companies.

PDF Image17-65 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 4m(1)
Tags:
Issuance Date:
Description:

A futures commission merchant (FCM), swap dealer (SD), or introducing broker (IB) that receives separate compensation for commodity trading advice is not required to register as a commodity trading advisor, provided that the offered advice is “solely incidental” to the conduct of the FCM’s or SD’s business, or “solely in connection with” the operation of the IB’s business.

PDF Image17-51 Letter Type: Interpretative
Division: DCR
Regulation Parts: 2(a)(1)(C), 5b(c)(2)(E), 22.3, 39.14
Tags: Cleared Swaps, Collateral, Core Principles, Jurisdiction, SEC, Settlement
Issuance Date:
Description:

Interpretation of the Commodity Exchange Act and Commission regulations regarding the characterization of variation margin payments and all other cash flows for cleared swaps.

PDF Image16-87 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 23.451
Tags: Swap Dealer
Issuance Date:
Description:

DSIO’s interpretation of Regulation 23.451 clarifying staff’s view that a swap dealer’s contributions for transition or inaugural expenses incurred by a successful candidate are only covered by the rule to the extent that such expenses are incurred by a successful candidate for a position as an official of a governmental Special Entity.

PDF Image16-69 Letter Type: Interpretative
Division: DCR
Regulation Parts: 39.11, 39.13, 39.15, 39.36
Tags: Financial Resources, Risk, SIDCO
Issuance Date:
Description:

Interpretation of CFTC regulations 39.11(e)(1); 39.13(g)(10); 39.15(c) and (e); and 39.36(f) in light of amendments to Securities and Exchange Commission rule 2a-7.

PDF Image16-34 Letter Type: Interpretative
Division: DSIO
Regulation Parts: 1a(10), 4.10(d)(1)
Tags: Commodity Pool, CPO, CTA
Issuance Date:
Description:

Interpretative relief granted that states that a pool that is only funded and traded by two brothers is not a commodity pool

PDF Image15-51 Letter Type: Interpretative
Division: DMO, DCR
Regulation Parts: 2(h)(8), 37.3
Tags: Registration, Trade Execution
Issuance Date:
Description:

DCR and DMO Interpretation regarding use by a derivatives clearing organization of a firm or forced trades process. Request for Interpretation Regarding the Applicability of Commission Regulation 37.3(a)(1) and Section 2(h)(8) of the Commodity Exchange Act to Derivatives Clearing Organizations and their Clearing Members.

PDF Image15-50 Letter Type: Interpretative
Division: DCR
Regulation Parts: 39, 39 Subpart C, 39.40
Tags: DCO
Issuance Date:
Description:

The CFTC Division of Clearing and Risk (the Division) interprets Part 39 (subparts A, B and C) to incorporate all of the standards set forth in the PFMIs and, indeed, to be fully consistent with the PFMIs. This position is supported by CFTC Regulation 39.40, which states that [t]his subpart C is intended to establish standards which, together with subparts A and B of this part [Part 39 of CFTC regulations], are consistent with Section 5b(c) of the Act and the Principles for Financial Market Infrastructures… and should be interpreted in that context.