CFTC Staff Letters

Staff Interpretation to Swap Dealers electing the Tangible Net Worth method of calculation capital under regulation 23.101.

Advisory to SDs indicating they are not required to obtain approval to use a model to calculate the initial margin on uncleared swaps for purposes of determining the SD’s minimum capital requirement under Commission regulations.

No-action relief from specified Part 39 regulations applicable to derivatives clearing organizations due to CX Clearinghouse, L.P.'s fully-collateralized clearing model.

Relief under Parts 43 and 45 to entities submitting swaps for clearing by derivatives clearing organizations (DCOs) operating under CFTC exemptive orders or no-action relief provided by CFTC staff.

Relief from Part 43 and 45 reporting, as well as related sections of Parts 38 and 39, for binary options executed on or pursuant to the rules of Kalshi and cleared through LedgerX.

Partial continuation of no-action positions to facilitate physical separation of registrant personnel in response to the COVID-19 pandemic

Brexit-related time limited no-action position with respect to certain swap dealer transaction-level requirements

The Division of Clearing and Risk (“DCR”) recently received several inquiries regarding the implementation of amendments to Regulation 39.13(g)(8)(ii) that the Commission adopted on January 27, 2020 with a compliance date of January 27, 2021. In particular, some market participants asked whether it would be permissible under Regulation 39.13(g)(8)(ii) as revised for a futures commission merchant (FCM) to assess whether a customer account presents a “heightened risk profile,” and is therefore subject to additional initial margin requirements, based on whether the account is a hedging or speculative account if the FCM concludes that is an appropriate method of assessing risk. DCR is confirming that it would be permissible for an FCM to do so, provided that the FCM maintains policies and procedures that demonstrate this is the risk analysis the FCM will use when determining whether to collect additional initial margin from a given customer.

Exemptive relief to registered Introducing Broker for filing a certified financial report under Regulation 1.10 and Regulation 1.16.

No-action relief granted from CPO and CTA registration to an entity that uses swaps in connection with its acquisition of biopharmaceutical royalties.