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.

Primary Sources

  1. CFTC Letter 20-46: Extension of No-Action Relief with Regard to Section 5b(a) of the Commodity Exchange Act and Commission Regulations Thereunder
  2. CFTC Press Release: CFTC Staff Extends No-Action Relief for Shanghai Clearing House

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