What is a no-action letter CFTC?
What is a no-action letter CFTC?
A no-action letter is a written statement by the staff of a Division of the Commission or its Office of the General Counsel that such staff will not recommend that the Commission commence enforcement action for failure to comply with a specific provision of the Act or Commission regulations.
What is a no-action relief?
No-action relief is a mechanism that allows registrants to obtain certain assurances when their conduct may touch upon a gray area of regulation, or even may be technically proscribed, but does not raise the policy concerns underlying a particular rule.
Does the CFTC have the authority to take enforcement action against non registrants?
Non-Registrant Sanctions: CFTC Taking Actions for Failure to File Required Reports. Non-Registrants face many CFTC rules and regulations, and increasingly the obligation to file certain reporting forms, including Forms 204 and 304. Perry spent time as a CFTC Senior Trial Attorney.
Who can the CFTC bring enforcement actions against?
The CFTC takes enforcement actions against individuals and firms registered with the Commission, those who are engaged in commodity futures and option trading on designated domestic exchanges, and those who improperly market futures and options contracts.
Who are swap dealers?
A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps …
What is a no action order?
A no-action letter is a letter written by the staff members of a government agency, requested by an entity subject to regulation by that agency, indicating that the staff will not recommend that the agency take legal action against the entity, should the entity engage in a course of action proposed by the entity …
Are no action letters binding?
A no-action letter binds only the issuing Division or the Office of the General Counsel, as applicable, and not the Commission or other Commission staff. Only the Beneficiary may rely upon the no-action letter.
Does CFTC prosecute criminal violations?
Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.
Does CFTC have jurisdiction over all activity that violates the Commodity Exchange Act?
To achieve this aim, the CFTC administers and enforces the Commodity Exchange Act (“CEA”) and its respective regulations. The CFTC has exclusive jurisdiction over, among others, any transaction “for the contract of sale of a commodity for future delivery,” with certain exceptions.
Can CFTC bring enforcement actions against entities and individuals that are not registered with the CFTC?
Within the last five years, the CFTC has brought 15 enforcement actions against unregistered commodity participants acting as Futures Commission Merchants (“FCMs”) and Commodity Trading Advisors (“CTAs”), including four enforcement actions specifically in the energy context.
Is RBC a swap dealer?
provisionally registered with the CFTC as a Swap Dealer since December 31, 2012. its other capital markets business. At all times relevant, RBCCM has been registered with the Commission as a FCM. RBC takes an enterprise-wide approach to managing its subsidiaries.
How do swap dealers make money?
The fact is, the moment a bank executes a swap with a customer, the bank locks a profit margin for itself. The bank’s profit is the difference between the higher fixed rate the bank receives from the customer and the lower fixed rate it pays to the market on its hedge.
Can a CFTC staff letter grant no action relief?
Conditional time-limited no-action relief from filing certain Ownership and Control Reports (OCR) required by Parts 17, 18 and 20 of the Commission’s Regulations. The CFTC’s staff grants time-limited no-action relief from certain position aggregation requirements.
Why are there no action positions at the CFTC?
No-action positions for certain members of designated contract markets and swap execution facilities to facilitate physical separation of personnel in response to the COVID-19 pandemic. No-action relief granted to a swap dealer concerning the calculation of initial margin under Commission regulation 23.154.
What was the CFTC letter no.17-37?
Extension of no-action relief granted in CFTC Letter No. 17-37, which granted relief from compliance with certain position aggregation requirements in Commission Regulation 150.4.
What does the CFTC staff letter no 16-58 do?
The CFTC’s staff grants time-limited no-action relief from certain position aggregation requirements. No-Action relief that extends the relief provided in Letter No. 16-58 by permitting SEFs and DCMs to address clerical or operational errors that cause a swap to be rejected from clearing.
