CFTC’s Division of Clearing and Risk extends no-action relief for Shanghai Clearing House

CFTC offices

The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) today issued a no-action letter extending the relief provided to the Shanghai Clearing House (SHCH) in CFTC Letter 16-56, which expires May 31, 2017.

The extension will last until the earlier of November 30, 2017 or the date on which the CFTC exempts SHCH from registration as a DCO.

The letter provides that DCR will not recommend that the CFTC take enforcement action against SHCH for failing to register as a derivatives clearing organization (DCO) pursuant to Section 5b(a) of the Commodity Exchange Act in light of SHCH’s pending petition for an exemption from registration as a DCO.

Under this relief, SHCH is permitted to clear certain swaps subject to mandatory clearing in the People’s Republic of China for the proprietary trades of SHCH clearing members that are U.S. persons or affiliates of U.S. persons.

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