On May 31, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) issued a no-action letter stating it would not recommend the CFTC take enforcement actions against the Shanghai Clearing House (SHCH) for failure to register as a derivatives clearing organization.

The no-action letter applies to swaps cleared by SHCH and subject to mandatory clearing by the People’s Bank of China. However, relief is limited to SHCH’s clearing of proprietary trades of US clearing members and their affiliates.

The no-action letter is effective until May 31, 2017.

CFTC Letter No. 16-56 is available here.