CFTC – Letter to Derivatives Clearing Organizations

Posted on December 22, 2021Comments Off on CFTC – Letter to Derivatives Clearing Organizations

CFTC Staff Extends Temporary No-Action Letter to Derivatives Clearing Organizations Regarding Amended Daily Reporting Requirements

Washington, D.C. (STL.News) The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) announced today that it is extending the temporary no-action letter previously issued to registered derivatives clearing organizations (DCOs) regarding the amended daily reporting requirements in CFTC Regulation 39.19.

In 2020, the Commission amended the daily reporting requirements in CFTC Regulation 39.19, with a compliance date of January 27, 2021. DCR issued CFTC Letter No. 21-01, which provided that DCR would not recommend that the Commission commence an enforcement action against any DCO for failing to comply with the amended daily reporting requirements in CFTC Regulation 39.19, so long as that DCO continued to comply with the daily reporting requirements as they were prior to the 2020 amendments.  This letter was issued to give staff time to complete the reporting guidance for DCOs and to consider issues raised in an industry request.

DCR is extending CFTC Letter No. 21-01, which was set to expire on January 27, 2022, for an additional five months, through June 27, 2022. Specifically, the letter continues to provide that DCR will not recommend that the Commission commence an enforcement action against any DCO for failing to comply with the amended daily reporting requirements in CFTC Regulation 39.19, so long as that DCO continues to comply with the daily reporting requirements as they were prior to the 2020 amendments.

In addition, DCR is extending through January 27, 2023, a discreet portion of CFTC Letter No. 21-01.  Because DCR requires additional time to study issues associated with the requirements that DCOs report variation margin and cash flows by individual customer account, DCR will not recommend that the Commission take enforcement action against any DCO for failing to comply with the requirements in Regulation 39.19(c)(1)(B) and (C), so long as that DCO continues to comply with the prior version of the regulation.

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