The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) has extended no-action relief previously granted to the Shanghai Clearing House in May.
The no-action relief provides that DCR will not recommend the CFTC take enforcement action against the Shanghai Clearing House for failure to register as a derivatives clearing organization (DCO) in light of Shanghai Clearing House’s pending petition for an exemption from registration as a DCO. Pursuant to the no-action relief, Shanghai Clearing House is permitted to clear certain swaps subject to mandatory clearing in the People’s Republic of China on behalf of the proprietary accounts of US clearing members.
The relief was set to expire on November 30, but DCR has extended the expiry date to February 28, 2018, or the date on which the CFTC formally exempts Shanghai Clearing House from registration as DCO.
CFTC Letter No. 17-62 is available here.