CFTC Extends No-Action Relief for FCMs Regarding Acknowledgement Letters from Certain Depositories (CFTC Letter 14-157)

The CFTC extended the no-action relief granted in CFTC Letter 14-127. The relief provides additional time for futures commission merchants ("FCMs") to comply with CFTC rules requiring FCMs to obtain acknowledgement letters from certain depositories.

CFTC Rules 1.20, 1.26, 22.5 and 30.7 and the Appendices require that an FCM deposit customers' funds only with depositories that have provided it with an acknowledgement letter in which such depositories agree to provide the Division of Swap Dealer and Intermediary Oversight ("DSIO") Director with direct, read-only electronic access to transaction and account balance information for FCM customer accounts.

Many depositories to FCMs have not provided acknowledgement letters because the CFTC-mandated online access agreements required by some depositories are still under review. According to the CFTC, the DSIO's review of such agreements will not be completed until after the expiration date for the prior no-action relief. Therefore, the CFTC extended the relief until April 30, 2015.

See: CFTC Letter 14-157.Related news: CFTC Extends No-Action Relief for FCMs Regarding Acknowledgement Letters from Certain Depositories (CFTC Letter 14-127) (with Zwirb Comment) (October 16, 2014); CFTC Issues Temporary No-Action Relief for FCMs Regarding Acknowledgement Letters from Certain Depositories (CFTC Letter 14-91) (July 11, 2014).