Quick Look: CFTC no-action letter 21-08

Broader guidance for our market emerged in the Division of Clearing and Risk’s letter 21-08 about the CFTC’s regulation 39.13(g)(8)(ii). Referring back to its own interpretive letter 12-08, the Division of Clearing and Risk pointed out that the CFTC had adopted many of the staff’s 2012 interpretations regarding futures commission merchants’ initial margin requirements for clearing customers in a...

read more

Quick Look: CFTC no-action letter 21-07

The CFTC’s Market Participants Division next issued an exemption via letter 21-07, permitting an introducing broker not to file a required CFTC form for 2020. Staff reasoned that because the broker in question had registered as an introducing broker with 21 days remaining in 2020, had a securities broker-dealer application pending with the Securities and Exchange Commission (“SEC”) and Financial...

read more

Quick Look: CFTC no-action letter 21-06

In no-action letter 21-06, the Market Participants Division of the Commodity Futures Trading Commission (“CFTC”) agreed that a company with a primary business of biopharmaceutical royalty returns needn’t register as a commodity pool operator when hedging its debt with interest rate swaps. No-action letter 21-06 is perhaps most notable because it was given to a company, Royalty Pharma LLC,...

read more

Quick Look: CFTC letters 21-03, 21-04, and 21-05

In determination letter 21-03, Market Participants Division staff approved a swap dealer capital model proposal from the National Futures Association (“NFA”). And the Market Participants Division joined the Division of Market Oversight to release two no-action letters extending record keeping relief for floor brokers, introducing brokers, and futures commission merchants on designated contract...

read more

Quick Look: CFTC letter 21-2

In its second staff letter of 2021, the Commodity Futures Trading Commission (“CFTC”) Market Participants Division issued a no-action letter explaining that the Market Participants Division will not recommend enforcement action against a futures commission merchant (“FCM”) that invests customer funds in otherwise permitted investments under Regulation 1.25 with an interest rate benchmarked to...

read more

Quick Look: CFTC’s first staff letter of 2021

In the first Commodity Futures Trading Commission (“CFTC”) staff letter of 2021, the CFTC’s Division of Clearing and Risk granted any DCO relief from daily reporting on individual customer accounts under the amended Regulation 39.19(c)(1) until January 27, 2022 as long as that DCO complies with the prior version of Regulation 39.19(c)(1). DCOs would otherwise have needed to report by the end of...

read more


45 S 7th Street
Suite #2212
Minneapolis, MN 55402

14205 SE 36th Street
Suite 100 #331
Bellevue, WA 98006