CFTC Staff Extends No-Action Relief from DCO Registration to Shanghai Clearing House

The CFTC Division of Clearing and Risk extended no-action relief from derivatives clearing organization ("DCO") registration to Shanghai Clearing House ("SHCH").

CFTC Letter 20-46 extends relief provided under CFTC Letter 18-18 (see previous coverage here) that will end the earlier of (i) July 31, 2022 or (ii) when the CFTC exempts SHCH from registration as a DCO under CEA Section 5b(h).

The CFTC stated that it will not recommend enforcement action against SHCH for failure to comply with CEA Section 5b(a) provided that SHCH:

• complies with the original conditions set out in CFTC Letter 16-56 (see previous coverage here), with an amendment to the condition "Product Scope"; and

• demonstrates continued compliance with CFTC Letter 18-18 daily reporting conditions.