On August 1, 2019, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued a letter extending prior no-action relief, which suspended the need for certain persons otherwise required to aggregate positions to proactively file formal written notice for position limits purposes. The prior relief, CFTC No Action Letter 17-37, was set to expire on August 12, 2019.
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On March 27, the Commodity Futures Trading Commission’s Market Intelligence Branch in the Division of Market Oversight (DMO) issued a report analyzing the entering of manual and automatic orders in commodity futures markets in the United States to determine how technological change is affecting futures trading. DMO staff used internal CFTC transactional data for 30 futures contracts during the period January 2013 – December 2018, and examined what effect the order placement mechanism had on the respective transaction.
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On December 21, 2018, the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission issued Letter 18-33 responding to a request for relief from compliance with certain position aggregation requirements under CFTC Regulation 150.4(b)(2)(i)(D).

CFTC Regulation 150.4(b)(2) provides an owned-entity exemption from aggregation. Any person with an ownership or equity interest in an owned entity of 10 percent or greater generally need not aggregate the accounts or positions of the owned entity with any other account or position such person is required to aggregate, provided that such person and the owned entity meet the conditions (A) through (E) of 150.4(b)(2)(i) (firewall conditions). Subparagraph (D) of the regulation prohibits the sharing of employees that control the trading decisions of either the person or the owned entity.
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On February 20, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) published Staff Letter 18-03, which extends the time-limited no-action relief provided in Staff Letter 16-85 for entities submitting swaps for clearing by derivatives clearing organizations (DCOs) operating under (1) exemptive orders issued by the CFTC; or (2) no-action relief granted by the CFTC’s Division of Clearing and Risk (Relief DCOs). (For a complete discussion of the relief provided by Staff Letter 16-85, please refer to the January 6, 2017 edition of Corporate & Financial Weekly Digest).
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On December 4, the Commodity Futures Trading Commission released a report of the results of its Division of Market Oversight’s (Division) Rule Enforcement Review of the Chicago Board of Trade, Chicago Mercantile Exchange, Commodity Exchange, Inc. and New York Mercantile Exchange, Inc. (collectively the CME Group).
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The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) has issued relief to allow swap execution facilities (SEFs) an additional 30 days to prepare and submit their annual compliance reports and financial reports for the fourth quarter.

As background, CFTC regulations require each SEF to file a financial report within 60 days after the

On September 25, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued Staff Letter No. 17-45 (Staff Letter), which both extends current relief, and provides additional relief, to reporting parties that must comply with the reporting obligations required by the ownership and control reports (OCR) final rule (OCR Final Rule). DMO is providing this relief in response to the compliance challenges reporting parties have encountered with respect to certain OCR reporting obligations.
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On November 21, the Commodity Futures Trading Commission Division of Market Oversight extended time-limited relief for certain registered swap dealers (SDs) and major swap participants (MSPs) from the swap data reporting rules set forth in Part 45 and Part 46 of the CFTC’s regulations. The relief is available to non-US SDs and non-US MSPs established

On November 28, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) and Division of Market Oversight (DMO) each extended previously issued no-action relief from clearing and trade execution requirements for certain inter-affiliate transactions. As discussed in the November 20, 2015 edition of the Corporate & Financial Weekly Digest, DMO previously provided time-limited no-action relief exempting certain affiliates from the trade execution requirement. This relief is available to affiliate counterparties that satisfy CFTC regulation 50.52(a) but not 50.52(b), (c) or (d), and are not exempt from clearing. DMO has extended its relief to December 31, 2017.
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The Division of Market Oversight of the Commodity Futures Trading Commission has extended the public comment period with regard to the proposal by ICE Futures U.S. (IFUS) to allow pre-hedging or anticipatory hedging in certain circumstances in connection with block trades reported to IFUS. For further details on IFUS’s proposal, see the Corporate & Financial Weekly Digest edition of June 17.
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