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
- CFTC Letter 20-46: Extension of No-Action Relief with Regard to Section 5b(a) of the Commodity Exchange Act and Commission Regulations Thereunder
- CFTC Press Release: CFTC Staff Extends No-Action Relief for Shanghai Clearing House
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.