Coronavirus: CFTC Extends No-Action Relief

On June 9, on the request of the Futures Business Affiliation, the Worldwide Swaps and Derivatives Affiliation, and the Securities Business and Monetary Markets Affiliation, the Commodity Futures Buying and selling Fee’s (CFTC) Division of Swap Vendor and Middleman Oversight (DSIO) and Division of Market Oversight (DMO) introduced that they’ve prolonged no-action reduction that was set to run out on June 30. DSIO and DMO initially issued a collection of CFTC Employees Letters on March 17 (Nos. 20-02, 20-03, 20-04, 20-05, 20-06, 20-07, and 20-09, collectively, COVID-19 Letters) in response to the COVID-19 pandemic, which offered no-action reduction to market contributors for failure to adjust to sure CFTC rules, the place compliance was anticipated to be impracticable due to the broad-sweeping measures taken to curtail the unfold of COVID-19. Particularly, the COVID-19 Letters offered reduction with respect to sure recordkeeping and reporting obligations of the next market contributors: (1) futures fee retailers, (2) introducing brokers, (3) swap sellers, (4) retail overseas change sellers, (5) ground brokers, and (6) individuals which might be members of designated contract markets or swap execution services that aren’t registered with the CFTC in any capability.

The no-action reduction offered by the COVID-19 Letters had been set to run out on June 30. The workers has now prolonged this reduction till September 30, topic to the phrases and situations as said within the relevant COVID-19 Letters.

For extra info, the CFTC Letter No. 20-19 is obtainable right here.