DSIO

Subscribe to DSIO via RSS

On June 30, the National Futures Association (NFA) published Notice to Members I-17-11, establishing an electronic process for a registered commodity trading advisor (CTA) to notify the NFA where the CTA uses a third-party recordkeeper. This notice is effected through the NFA’s electronic Exemptions System by claiming a “4.7(c)(2)” or “4.33” exemption, as applicable, and…

The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) has issued exemptive relief to commodity trading advisors (CTAs) from the requirement to keep records under CFTC Regulations 4.7(c)(2) and 4.33 at the CTA’s main business office. As provided in the exemptive letter, a CTA may use a third-party recordkeeper so long …

On April 18, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No-Action Letter 17-22, which extends relief previously granted under CFTC No-Action Letter 17-05. CFTC No-Action Letter 17-05 allowed certain swap dealers to substitute compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the …

On April 11, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediate Oversight (DSIO) made publicly available No-Action Letter No. 16-88. This letter grants no-action relief to a futures commission merchant (FCM) intending to deposit customer-owned securities in an individual client account (ISA) with a United Kingdom affiliate (Affiliate) for purposes of margining such customers’ foreign futures or foreign options positions executed on a foreign board of trade located in the UK and cleared through a clearing organization that (1) is a central counterparty (CCP) that has received a recognition order as a recognized clearing house (RCH) and is subject to supervision by the Bank of England under Part 18 of the Financial Services and Markets Act 2000; and (2) has been authorized as a CCP pursuant to Article 17 of Regulation (EU) No 648/2012 of the European Parliament and the July 4, 2012 Council on OTC derivatives, central counterparties and trade repositories (an EU CCP).
Continue Reading CFTC Releases No-Action Letter Regarding the Transfer of Customer-Owned Securities by FCMs to Foreign Brokers

On July 6, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) published Staff Advisory No. 16-60 (Advisory), which reminds futures commission merchants (FCMs) and introducing brokers (IBs) of their obligations to report certain kinds of suspicious activities.
Continue Reading CFTC Issues Advisory Regarding Suspicious Activity Reporting and Economic Sanctions Programs

On May 13, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued the Residual Interest Deadline for Futures Commission Merchants Report (Report). The Residual Interest Deadline is the time by which a futures commission merchant (FCM) must assure that it is holding in its customer segregated accounts a sufficient amount…

The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) has granted no-action relief to certain intermediaries located outside the United States. As background, CFTC Regulation 3.10(c)(3)(i) provides an exemption from registration as a commodity pool operator (CPO), commodity trading advisor (CTA) or introducing broker (IB) to persons located outside the United States that act only on behalf of persons located outside the United States. To avail themselves of this exemption, these non-US persons must submit their commodity interest transactions for clearing through a registered futures commission merchant.
Continue Reading CFTC Grants Relief to Certain Non-U.S. Intermediaries

The Commodity Futures Trading Commission has proposed to amend Regulation 3.21 to provide an exemption for the fingerprinting requirements for an individual who is a principal or associated person of a registrant, if such individual has not resided in the United States since reaching the age of 18 years. Under the proposal, the fingerprint card obligation would be deemed satisfied if the individual’s certifying firm conducts a criminal history background check and submits a certification to National Futures Association. The proposed rule would codify and expand relief that the Division of Swap Dealer and Intermediary Oversight previously provided in Letter No. 12-49 and Letter No. 13-29.
Continue Reading CFTC Proposes Alternative to Fingerprinting Requirement for Foreign Individuals

On July 21, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) granted exemptive relief to certain commodity trading advisors (CTAs) from the requirement in CFTC Regulation 4.27(c) to file a Form CTA-PR annually. The relief extends to CTAs that are registered with the CFTC but do not direct any trading…