No-Action Relief and Exemptive Orders 

Staff’s no-action position on treatment of deferred tax liabilities caused by change in accounting principles. The Division of Swap Dealer and Intermediary Oversight announced that it has issued no-action relief to registered futures commission merchants and introducing brokers to exclude deferred tax liabilities that are directly related to the capitalized costs of certain non-allowable assets when computing their adjusted net capital under Commission Regulation 1.17. (1/4/2018)  

Divisions extend no-action relief from swap clearing and trade execution requirements. The CFTC announced that its Divisions of Clearing and Risk and Market Oversight each extended previously-issued no-action relief from the swap clearing and trade execution requirements for certain inter-affiliate transactions. (12/14/2017)   

Proposed exemptive order is issued to permit ICE DCOs to invest customer funds in French and German sovereign debt. The CFTC announced that it has approved for publication in the Federal Register a proposed exemptive order that would permit derivatives clearing organizations ICE Clear Credit LLC, ICE Clear US, Inc., and ICE Clear Europe Limited to invest, subject to certain conditions, futures and swap customer funds in French and German sovereign debt. The comment period on the proposal ends 30 days after its publication in the Federal Register. (12/12/2017)   

CFTC approves exemption from SEF registration requirement for MTFs and OTFs authorized within the EUThe CFTC announced the issuance of an orderexempting certain multilateral trading facilities and organized trading facilities authorized within the EU from the requirement to register with the CFTC as swap execution facilities. The order became effective on January 3, 2018. (12/8/2017)   

Requests for Comment   

Proposed Interpretation on virtual currency ‘actual delivery’ in retail transactions. The CFTC announced a Proposed Interpretation concerning its authority over retail commodity transactions involving virtual currency, such as bitcoin. The Proposed Interpretation sets out the agency’s view on the “actual delivery” exception that may apply to virtual currency transactions. The Proposed Interpretation is open for public comment for 90 days from publication in the Federal Register. (12/15/2017)   

Other Developments   

MRAC will meet to discuss self-certification process. The CFTC announced that its Market Risk Advisory Committee will hold a public meeting on January 31, 2018, at the agency’s Washington, DC headquarters. At this meeting, the MRAC will discuss the statutory and regulatory process for the listing of new and novel products on CFTC-regulated designated contract markets and swap execution facilities through self-certification. (1/4/2018)   

Technology Advisory Committee meeting. The CFTC announced that its Technology Advisory Committee will be holding a public meeting on January 23, 2018 at the agency’s Washington, DC, headquarters. (12/12/2017)   

Staff issues interpretive guidance clarifying commodity trading advisor registration requirementsThe CFTC announced that its Division of Swap Dealer and Intermediary Oversight has issued interpretative guidance providing that a futures commission merchant, swap dealer, or introducing broker that receives separate compensation for commodity trading advice is not required to register as a commodity trading advisor, as long as the offered advice is “solely incidental” to the conduct of the FCM’s or SD’s business, or “solely in connection with” the operation of the IB’s business. The interpretation was requested as a result of the EU’s MiFID II Directive, which will require certain investment managers to make separate payments for investment research services and execution services beginning on January 3, 2018. (12/11/2017)