June 3, 2013

CFTC’s Division of Clearing and Risk Issues Extension of Time for Compliance with Certain Pre-Trade Screening Requirements of the Commission’s Rule Regarding Bunched Orders for Futures

Washington, DC – The Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) announced on Friday the issuance of an extension of time for compliance in order to provide additional time for market participants to coordinate on the communication of limits for bunched orders for futures.  The extension applies to the obligation of futures commission merchants (FCMs) clearing allocated futures trades to establish risk-based limits for each customer and enter into an agreement with the account manager requiring the account manager to screen orders for compliance with those limits.  The extension does not apply to the obligation that the FCM initially clearing the bunched order establish risk-based limits for the bunched order and screen the order for compliance with the limit.  This extension also does not extend the relief previously granted for give-ups.  This extension of time is intended to provide sufficient time to transition to fully compliant pre-trade screening no later than September 1, 2013.

Last Updated: June 3, 2013