On November 13, 2014, the CFTC issued no-action relief regarding Regulation 30.7 which addresses the holding of customer funds deposited to margin foreign futures and foreign options transactions by futures commission merchants (“FCMs”). Additionally, the CFTC also issued two interpretations of Regulation 30.7. Under Regulation 30.7, a FCM is only permitted to maintain a maximum of 120 percent of the required margin on the customers’ foreign futures and foreign options positions in accounts with non-US depositories. The purpose of the no-action relief allows a FCM to exclude customer funds deposited with a foreign bank or trust company that otherwise qualifies as a depository under Regulation 30.7 from the calculation of the 120 percent limit.
CFTC Staff Letter N. 14-138 is available at: