CFTC Issues Time-Limited No-Action Relief To Futures Commission Merchants From CFTC Regulations Requiring Acknowledgement Letter From Certain Depositories

On 11 July 2014, the US Commodity Futures Trading Commission's ("CFTC") Division of Swap Dealer and Intermediary Oversight ("DSIO") issued a no-action letter announcing relief for futures commission merchants ("FCMs") from compliance with certain CFTC regulations.

Specifically, CFTC Regulations 1.20(d)(3)(i) and (ii), 1.26, 22.5, and 30.7(d)(3)(i) and (ii) require that FCMs deposit customer funds only with depositories that have provided the FCM with an acknowledgement letter in which such depositories agree to provide the DSIO Director (or such director's designees) with direct, read-only electronic access to transaction and account balance information...