On April 14, the Commodity Futures Trading Commission’s Market Participants Division (MPD) and Division of Market Oversight (DMO) jointly issued CFTC Staff Letter 21-10 to extend, for a limited time, parts of the temporary no-action relief granted in response to the COVID-19 pandemic, which expired on April 15.
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CFTC Staff Provides Limited Continuation of Certain No-Action Relief to Market Participants in Response to COVID-19
By Kevin M. Foley & Elise W. Michael on
Posted in CFTC, Derivatives
On January 19, the Commodity Futures Trading Commission’s Market Participants Division (MPD) and Division of Market Oversight (DMO) issued CFTC Staff Letter No. 21-04 and Letter No. 21-05 (the Staff Letters) to extend, for a limited time, parts of the temporary no-action relief granted in response to the COVID-19 pandemic, which expired on January 15.
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CFTC Approves Final Rules Regarding Electronic Trading Risk Principles and Bankruptcy Regulations
By Kevin M. Foley & Jack A. West on
Posted in CFTC
On December 8, the Commodity Futures Trading Commission (CFTC) approved a final rule amending CFTC Regulation Part 38 to address the risk of a designated contract market’s (DCM) trading platform experiencing a market disruption due to electronic trading. The final rule sets forth three principles applicable to DCMs concerning:
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CFTC No-Action Letter 20-24: CFTC Provides Relief from the Trade Execution Requirement
By Gregory A. Uffner & Kevin M. Foley on
Posted in CFTC
On August 31, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued a no-action letter (No-Action Letter 20-24) providing time-limited relief from the trade execution requirement for certain swaps.
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CFTC Approves Two Final Rules and Two Proposed Rules at June 25 Open Meeting
Posted in CFTC, Derivatives
On June 25, the Commodity Futures Trading Commission held an open meeting where it approved two final rules, advanced two proposed rules and withdrew a previously proposed rule and supplemental proposal.
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NFA Proposes Amendments to Interpretive Notice on Disclosures for Security Futures Contracts
By Kevin M. Foley & Jack A. West on
Posted in CFTC
On May 28, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission (CFTC) proposed amendments to NFA Interpretive Notice 9050 regarding risk disclosure statements for security futures contracts. NFA Compliance Rule 2-30(b) and Interpretive Notice 9050 require NFA Members and Associates, who are registered as brokers or dealers under Section 15(b)(11) of the Securities Exchange Act of 1934, to provide a uniform disclosure statement for security futures products (SFPs) to a customer at or before the time the Member approves the account to trade SFPs.
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CFTC Staff Issues Advisory Addressing Current Market Conditions
Posted in CFTC, Derivatives
The Commodity Futures Trading Commission Divisions of Market Oversight (DMO), Swap Dealer and Intermediary Oversight (DSIO), and Clearing and Risk (DCR) (together, the Divisions) issued CFTC Letter 20-17 to remind Designated Contract Markets (DCMs), Futures Commission Merchants (FCMs) and Derivatives Clearing Organizations (DCOs) of their obligations to prepare for extreme market volatility, low liquidity and possibly negative pricing for certain contracts. The Divisions issued the advisory in light of unusually high volatility and negative pricing experienced in the May 2020 West Texas Intermediate (WTI), Light Sweet Crude Oil Futures contract on April 20 (the penultimate day of trading and expiration of the contract), although the guidance also applies to trading in other commodities.
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CFTC Grants Bitnomial Exchange, LLC Status as a Designated Contract Market
Posted in CFTC
The Commodity Futures Trading Commission (CFTC) announced that it has issued an Order of Designation to Bitnomial Exchange, LLC (Bitnomial Exchange), granting it status as a designated contract market (DCM), effective April 20, 2020. Located in Chicago, Bitnomial Exchange is a limited liability company formed under Delaware state law. Bitnomial Exchange must comply with all…
CFTC Issues Temporary Relief from Certain Regulatory Requirements
By Kevin M. Foley & Elizabeth Organ on
Posted in CFTC, Derivatives
On March 17, the staff of the Commodity Futures Trading Commission (CFTC) issued a series of no-action letters to provide certain CFTC-regulated entities and registrants with temporary regulatory relief from a targeted set of regulatory requirements.
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CFTC Designates Small Exchange, Inc. as a Designated Contract Market
By Kevin M. Foley & Jack A. West on
Posted in CFTC
On March 10, the Commodity Futures Trading Commission (CFTC) announced that it had issued an Order of Designation approving the application of the Small Exchange, Inc. (Small Exchange) for designation as a contract market (DCM).
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