Derivatives

The Commodity Futures Trading Commission (CFTC) is responsible for overseeing the multi-trillion-dollar derivatives markets, including the markets for futures, options on futures, and swaps, and for policing markets for underlying agricultural, financial, energy, and digital commodities in certain respects. The CFTC’s authority is set forth in the Commodity Exchange Act, which requires the registration and oversight of market infrastructure firms and market participants. The CFTC’s registered entities and registrants include futures exchanges (designated contract markets), electronic trading platforms for swaps (swap execution facilities), clearinghouses (derivatives clearing organizations), swap data repositories, swap dealers, futures commission merchants, commodity pool operators and commodity trading advisors, among others.

= Actions considered to be most consequential

1 - Commodity Futures Trading Commission (CFTC)

Date of Action:

04/24/2020

Summary of Action: Relief from requirement that individuals registering to be associated persons of CFTC registrants, or to be listed as principals of applicants for registration, submit fingerprints to NFA, provided that a reasonable criminal background check is conducted in lieu of submitting fingerprints.  NFA has suspended fingerprinting service; fingerprints not submitted during pendency of relief must be submitted within 30 days of the NFA continuing fingerprinting service.

https://www.cftc.gov/PressRoom/PressReleases/8158-20 

Type of Policy: No-Action Letter

 

Expires: 09/30/2020

2 - Commodity Futures Trading Commission (CFTC)

Date of Action:

04/22/2020

Summary of Action: Allows futures commission merchants and introducing brokers who receive PPP loans to add back into their capital the forgivable amounts of the loans when calculating net capital.

https://www.cftc.gov/PressRoom/PressReleases/8156-20

Type of Policy: No Action Letter

Expires: N/A

3 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/31/2020

Summary of Action: Allows foreign affiliates of FCMs , that are exempt from registration as FCMs by virtue of CFTC Rule 30.5, to accept orders from U.S. person for execution on U.S. contract markets, without requiring the foreign affiliate to be registered as an Introducing Broker.

https://www.cftc.gov/PressRoom/PressReleases/8142-20 

Type of Policy: No-Action Letter

 

Expires: 09/30/2020

4 - OCC, FRB, FDIC

Date of Action:

03/27/2020

Summary of Action: Allows early adoption of SA-CCR, i.e. a new “more risk-sensitive measurement of the exposure amounts of derivative contracts.”  Effective date of the SA-CCR final rule was April 1, 2020; banks would have been able to use the framework then (advanced approaches banks are required to adopt the framework by January 1, 2022), this rule allows them to use the framework for 1Q 2020 reporting. 

https://www.federalregister.gov/documents/2020/03/31/2020-06755/standardized-approach-for-calculating-the-exposure-amount-of-derivative-contracts.

Type of Policy: Notification of Change in Effective Date

Expires: N/A

5 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/20/2020

Summary of Action: Relief for commodity pool operators from filing deadlines for Form CPO-PQR, Pool Annual Reports, and Pool Periodic Account Statements. 

https://www.cftc.gov/PressRoom/PressReleases/8136-20

Type of Policy: No-Action Letter

 

Expires: CPO-PQR deadline for small or mid-sized CPOs is May 15; CPO-PQR deadline for large CPOs is July 15; Pool Annual Reports due before April 30, 2020 are due within 45 days after the due date; Pool periodic account statements for all reporting periods ending on or before April 30, 2020, must be distributed within 45 days of the end of the reporting period.

6 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/20/2020

Summary of Action: Relief for a “major” insured-depository institution from counting swaps whose underlying commodity is crude oil, natural gas, or natural gas liquids, towards the “aggregate uncollateralized outward exposure” for purposes of determining whether the IDI is a “major swap participant.”  To qualify for relief, the swap must also be excluded from the de minimis calculation pursuant to the exclusion for swaps entered in connection with originating loans to IDI customers.  The CFTC justifies the relief because of the unprecedented drop in oil prices, causing the AUOE of the requesting IDI to increase significantly.

https://www.cftc.gov/PressRoom/PressReleases/8136-20

Type of Policy: No-Action Letter

Expires: 09/30/2020

7 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Relief for SEF’s from filing deadlines to submit CCO annual reports and fourth quarter financial reports.  The relief applies if the reports were required to be filed before September 1, 2020; the reports must be filed within 120 days from the end of the SEF’s fiscal year.

https://www.cftc.gov/PressRoom/PressReleases/8133-20

Type of Policy: No-Action Letter

 

Expires: Relief applies to reports due before 09/01/20; SEFs have 120 days from end of fiscal year to submit reports.

8 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Relief for SEFs from requirements related to audit trail, trade monitoring, trade reconstruction, and recordkeeping, to the extent compliance is affected by inability to record voice communications because of personnel displacement. 

https://www.cftc.gov/PressRoom/PressReleases/8133-20

Type of Policy: No-Action Letter

Expires: 01/15/2021

9 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Relief for Designated Contract Markets from audit-trail and related requirements under CEA sections 5(d)(4) and (10) and CFTC regulations, in light of potential disruptions due to COVID-19. 

https://www.cftc.gov/PressRoom/PressReleases/8133-20

Type of Policy: No-Action Letter

 

Expires: 01/15/2021

10 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Relief for swap dealers, introducing brokers, and futures commission merchants, from requirements to make and keep records of oral communications and time-stamp orders.  Also gives an additional 30 days to provide CCO reports, in light of potential personnel absences and other disruptions due to COVID-19. 

https://www.cftc.gov/PressRoom/PressReleases/8132-20

Type of Policy: No-Action Letter

Expires: 01/15/2021

11 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Relief for foreign exchange dealers from requirements to make and keep records of oral communications and to time-stamp orders, in light of potential personnel absences and other disruptions due to COVID-19. 

https://www.cftc.gov/PressRoom/PressReleases/8132-20

Type of Policy: No-Action Letter

 

Expires: 01/15/2021

12 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Provides relief for floor brokers from requirements to make and keep records of oral communications, to time-stamp orders, to be physically present on the trading floor, and to register as an Introducing Broker, in light of potential personnel absences and other disruptions due to COVID-19. 

https://www.cftc.gov/PressRoom/PressReleases/8132-20

Type of Policy: No-Action Letter

Expires: 01/15/2021

13 - Commodity Futures Trading Commission (CFTC)

Date of Action:

03/17/2020

Summary of Action: Provides relief from Rule 1.35 requirement to time-stamp orders, if personnel responsible for making records is required to be absent, provided that record of date and time to the nearest minute is otherwise created pursuant to Rule 1.35.

https://www.cftc.gov/PressRoom/PressReleases/8132-20

Type of Policy: No-Action Letter

 

Expires: 01/15/2021

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