CFTC Staff Letters

Issuance of a temporary registration order as a swap execution facility to LedgerX LLC. (DMO)

The Division of Market Oversight is issuing Guidance to swap execution facilities regarding the calculation of projected operating costs or expenses for the purpose of meeting the financial resource requirements under SEF Core Principle 13 and Commission Regulation 37.1303 and clarifies that commissions paid employee-brokers, calculated as a percentage of transaction revenue, do not have to be included in the calculation.

Staff advisory from the Divisions of Market Oversight and Swap Dealer and Intermediary Oversight to remind futures commission merchants, clearing members, foreign brokers, swap dealers, and certain reporting markets of their obligation to obtain information on a timely basis from their customers or counterparties in order to comply with the ownership and control reports (OCR) final rule.

DSIO guidance to chief compliance officers of FCMs, SDs, and MSPs on how to comply with the requirement under Commission Regulation 3.3(e) to prepare an annual report.

Update: This letter has been replaced by letter 14-126.

Best practices for complying with GLB Security Safeguards

Staff from the Division of Market Oversight and the Division of Clearing and Risk issued an Advisory, which helps provide clarity to certain market participants regarding certain statements made in the Final Order in Response to a Petition from Certain Independent system Operators and Regional Transmission Organizations to Exempt Specified Transactions Authorized by a Tariff or Protocol Approved by the Federal Energy Regulatory Commission or the Public Utility Commission of Texas from Certain Provisions of the Commodity Exchange Act Pursuant to the Authority Provided in the Act.

The Division of Clearing and Risk issued a letter providing guidance to ASX Clear (Futures) Pty Limited (“ASXCLF”) regarding compliance with the condition to No-Action Letter 14-07, which requires ASXCLF to comply with the reporting obligations applicable to registered derivatives clearing organizations under the Commissions Part 45 regulations.

Staff Advisory Concerning Commodity Trading Advisors and Swaps

The Division of Swap Dealer and Intermediary Oversight (DSIO) issued an Advisory on the applicability of Dodd-Frank Transaction-Level Requirements to swaps between non-U.S. swap dealers (whether an affiliate or not of a U.S. person) and non-U.S. persons if the swap is arranged, negotiated, or executed by personnel or agents of the non-U.S. swap dealer located in the U.S.