The Commodity Futures Trading Commission’s Division of Market Oversight issued a no-action letter granting certain relief to brokers (including foreign brokers) and traders with specified large positions or trading activity (so-called “volume threshold accounts”) from providing certain information to it pursuant to the Commission’s ownership and control reporting regime.
Among other things, the relief delayed for two additional days (until the morning of R+3) the date by when a broker must identify to the CFTC on a Form 102A the name of a trader associated with a trading account that exceeds specified position or trade volume thresholds (250 contracts/day) for the first time, and eliminated a requirement that the names of natural person account controllers be identified. For traders, the relief eliminated a current requirement to answer a question on the Form 40 they file regarding who may have direct or indirect influence on a reporting party’s trading, as well as clarifies that updates to Form 40 are not automatically required under certain enumerated circumstances, but only when specifically requested by the CFTC. Other relief to both brokers and traders was included in the staff’s NAL.
DMO’s NAL was in response to a request by the Futures Industry Association and the Commodity Markets Council.
In response to DMO’s NAL, ICE Futures U.S. issued a guidance indicating that it will conform its own volume threshold accounts reporting trigger levels to those identified by staff (e.g., 250 contracts or more per day; click here to access this guidance). In general, the CFTC requires both brokers and significant participants in US futures and swaps markets to provide certain information to it regarding such large participants. (Click here for background on the CFTC’s OCR regime.)
Earlier in September, the CFTC’s Office of Data and Technology rolled out enhancements to its portal through which certain reporting traders are required to file CFTC Form 40s. The enhancements included introduction of a wizard-style format to allow users to navigate through different sections of the form, an autosave feature, and the ability to generate a PDF version of a finally submitted form. (Click here for further details in the article, “CFTC Enhances Online Form 40 Portal” in the September 24, 2017 edition of Bridging the Week.)