September 26, 2017

CFTC Approves Delegated Authority Provisions for Designated Contract Markets

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today adopted final rules delegating authority to CFTC staff, under the agency’s system safeguards rules, to notify each designated contract market (DCM) annually of whether it is a “covered DCM” as that term is defined in CFTC Regulation 38.1051(h)(1).

This annual notice will also inform each DCM of its percentage of the total annual trading volume among all DCMs regulated by the CFTC. A covered DCM is a DCM whose annual trading volume in a given year is five percent or more of the combined annual trading volume of all DCMs. Covered DCMs are required to comply with enhanced requirement concerning the frequency of its cybersecurity testing and its use of independent contractors to perform some of that testing. The final rules delegate the authority to provide this notice to the Director of the CFTC’s Division of Market Oversight or another employee or employees as the Director may designate.

These final rules will be effective upon their publication in the Federal Register.

Last Updated: September 26, 2017