Release Number 7649-17

November 20, 2017

CFTC’s Division of Clearing and Risk Extends No-Action Relief for Shanghai Clearing House

Washington, DC — The Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) today issued a no-action letter extending the relief provided to Shanghai Clearing House (SHCH) in CFTC Letter 16-56, which, as extended by CFTC Letter No. 17-26, expires November 30, 2017. The extension will last until the earlier of February 28, 2018 or the date on which the CFTC exempts SHCH from registration as a derivatives clearing organization (DCO).

The extension provides that DCR will not recommend that the CFTC take enforcement action against SHCH for failing to register as a DCO as required by Section 5b(a) of the Commodity Exchange Act in light of SHCH’s pending petition for an exemption from registration as a DCO. Under this relief, SHCH is permitted to clear certain swaps subject to mandatory clearing in the People’s Republic of China for the proprietary trades of SHCH clearing members that are U.S. persons or affiliates of U.S. persons.

Last Updated: November 20, 2017