The CFTC Division of Clearing and Risk ("DCR") provided temporary no-action relief to registered derivatives clearing organizations ("DCOs") from daily reporting requirements required under CFTC amendments to its Rule 39.19(c)(1). (See previous coverage.)
In their request for relief, the Chicago Mercantile Exchange Inc., ICE Clear Credit LLC, ICE Clear Europe Limited, ICE Clear US, Inc., ICE NGX Canada Inc., Minneapolis Grain Exchange, Inc. and the Options Clearing Corporation asserted that "operational and technological issues" would impede their ability to comply with the amended CFTC Rule 39.19(c)(1)(i)(B) and 39.19(c)(1)(i)(C) requirements regarding DCOs' reporting on "initial margin, variation margin, cash flow, and position information by individual customer account."
The DCR stated that, because it is not in a position to provide "prompt resolution" to such issues prior to the January 27, 2021 compliance date, it will not recommend enforcement action against DCOs for failing to comply with the amended CFTC Rule 39.19(c)(1) requirements, provided that the DCOs continue to comply with the previous version of the regulation.
The relief will expire on January 27, 2022.
Primary Sources
- CFTC No-Action Letter 21-01: Request for Temporary No-Action Relief from the Reporting Requirements in Commission Regulation 39.19(c)(1)
- CFTC Press Release: CFTC Staff Grants Temporary No-Action Relief to Derivatives Clearing Organizations from Amended Daily Reporting Requirements
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