CFTC Extends Temporary No-Action Positions Linked to Brexit

The Commodity Futures Trading Commission’s Market Participants Division and Division of Market Oversight have extended temporary no-action positions connected to the United Kingdom’s withdrawal from the European Union, known as Brexit. The action appears in CFTC Staff Letter No. 26-28 and continues prior relief to support continuity of derivatives trading and clearing activities between the UK and the United States.

The extension maintains the framework established after the CFTC acted to issue EU comparability determinations and exemptive orders for certain EU entities. MPD and DMO state that keeping these no-action positions in place is proper while further work proceeds with UK authorities.

2019 Joint Statement on Regulatory Continuity

On February 25, 2019, the CFTC issued a statement alongside the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority. That statement provided regulatory certainty for derivatives trading and clearing activities in the wake of Brexit.

Parameters of the Current Extension

The letter extends positions first announced in CFTC Staff Letter No. 24-11, as amended by CFTC Staff Letter No. 26-10. It preserves the existing certainty while the CFTC analyzes relevant UK law with UK authorities and considers issuance of UK comparability determinations and exemptive orders for certain UK entities, according to the CFTC press release.

Reporting: CFTC Press Releases

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