CFTC Issues No-Action Relief to Guaranteed Introducing Broker (CFTC Letter 14-133)

The CFTC Division of Swap Dealer and Intermediary Oversight issued no-action relief from the provison in CFTC Rule 1.57(a)(1), which provides that a specific guaranteed introducing broker may open and carry each customer account solely with its guarantor futures commission merchant and on a fully disclosed basis. The no-action relief would allow the introducing broker to direct trades to a number of different FCMs, provided that one of the firms takes ultimate responsibility for any trades rejected by the other FCMs.

See: CFTC Letter 14-133.