CFTC Staff Letters

The Division of Market Oversight is extending the relief provided in CFTC Letter No. 14-26 for one year, until December 31, 2015. The letter provides no-action relief from the trade execution requirement of Commodity Exchange Act section 2(h)(8) to eligible affiliate counterparties, as defined in section 50.52(a) of the Commission’s regulations.

No-action letter again extending the time-limitation contained in an alternative compliance framework available to certain affiliated counterparties pursuant to Commission regulation 50.52(b)(4)(ii)-(iii).

Time-limited no-action relief to allow Southwest Airlines and its counterparties additional time for public reporting of long-dated Brent and WTI crude oil swap and swaption contracts executed by or with Southwest Airlines.

The Division of Swap Dealer and Intermediary Oversight issued a “no-action” position from compliance with certain requirements of Regulation 1.57(a)(1), such that a guaranteed introducing broker could open and carry customer accounts with other than its guaranteeing futures commission merchant. Among other things, customers would be eligible contract participants and it was anticipated that the ultimate owner of the guaranteeing futures commission merchant would be the ultimate owner of an interest in the guaranteed introducing broker.

Staff interpretation regarding notification of the right to segregation of initial margin in uncleared swap transactions and quarterly reporting under Commission Regulations 23.701 and 23.704

Extension of no-action relief from compliance with certain conditions associated with the receipt of customer funds by FCMs.

No-action relief for Victoria University of Wellington, New Zealand, to operate a not-for-profit market for event contracts, and to offer event contracts to U.S. persons.

Staff issued an interpretation providing that a futures commission merchant (FCM) may credit a customer’s trading account for a margin payment upon the FCM’s initiation of a withdrawal from the customer’s bank account using the Automated Clearing House (ACH) payment processing system. The FCM also may consider such pending margin payments in computing its regulatory capital.

Exemption from requirement that a pool’s financial statement be audited by independent public accountants.

DSIO is issuing an extension of a previous no-action letter providing additional time for futures commission merchants (FCMs) to comply with Commission regulations requiring FCMs to obtain acknowledgement letters from certain depositories. DSIO will provide no-action relief until December 31, 2014.