CFTC Staff Grants No-Action Relief to FCM Branch on Segregation Requirements

The CFTC Market Participants Division granted no-action relief to a futures commission merchant regarding the manner in which it receives and holds funds deposited by Taiwan-based customers, when there may be a conflict between CFTC and Taiwan regulation governing the segregation of customer funds.

Subject to a number of conditions, the Division granted no-action relief from CFTC Rule 1.20 ("Futures customer funds to be segregated and separately accounted for") for when Taiwan-based customers deposit funds to margin U.S.-listed futures contracts and such funds are held in accordance with relevant Taiwanese requirements (i.e., with Taiwan banking institutions authorized by the Taiwan Securities and Futures Bureau).