UPDATE: CTFC Issues No-action Letters for Temporary Relief in Response to COVID-19 Pandemic

In March, the CFTC issued several no-action letters aimed at providing temporary relief from certain recordkeeping, operations requirements, and some reporting deadlines. The CFTC announced in June that it would extend many of the no-action relief letters that were set to expire on June 30 due to COVID-19. The updates are highlighted in the summary table below.

In addition, the CFTC offers a coronavirus-focused webpage, cftc.gov/coronavirus, which includes eight of the nine No-Action letters as well as a Customer Advisory to raise awareness of potential scams during this turbulent time.

Finally, CFTC Chairman Heath Tarbert recently published an op-ed covering his thoughts on the pandemic and market volatility. It can be read by clicking here.

Registrant Summary* Citation
DCMs and SEFs Relief from time-stamps if responsible personnel is absent. A recording of date/time is still required to be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-02
FCMs and IBs Relief from recording oral communications if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-03
FCMs and IBs Relief from time-stamps if responsible personnel is absent. A recording of date/time is still required to be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-03
FCMs and IBs Relief of CCO Annual Report to the Commission no later than 30 days after the report was due, for any report due to the Commission prior to September 1, 2020. CFTC Letter No. 20-03
FBs Relief from recording oral communications if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-04
FBs Relief from time-stamps if responsible personnel is absent. A recording of date/time is still required to be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-04
FBs Relief to FB from physical location provided by contract market if FB’s written BCP requires FB’s absence. Extended to Sept. 30, 2020 CFTC Letter No. 20-04
FBs Relief from Introducing Broker’s registration solely due to FB’s absence if FB’s written BCP requires FB’s absence. Extended to Sept. 30, 2020 CFTC Letter No. 20-04
RFEDs Relief from recording oral communications if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-05
RFEDs Relief from time-stamps if responsible personnel is absent. A recording of date/time is still required to be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-05
SDs Relief from recording oral communications if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-06
SDs Relief from time-stamps if responsible personnel is absent. A recording of date/time is still required to be maintained. Extended to Sept. 30, 2020 CFTC Letter No. 20-06
SDs Relief of CCO Annual Report to the Commission no later than 30 days after the report was due, for any report due to the Commission prior to September 1, 2020. CFTC Letter No. 20-06
SEFs Relief for the failure to comply with the following Commission regulations: 37.205(a)-(b), 37.400(b), 37.406, 37.1000(a)(1), and 37.1001 to the extent that non-compliance arises from the inability of SEFs to record voice communications as a result of the displacement of voice trading personnel from their normal business sites in connection with the COVID-19 pandemic response. 7 conditions accompany this relief in the letter. Extended to Sept. 30, 2020 CFTC Letter No. 20-07
SEFs or SEF CCOs Relief for a 60-day period for failure to submit an ACR pursuant to regulation 37.1501(f)(2), if ACR is due prior to September 1, 2020 and ACR is submitted no later than 120 days after the end of SEFs fiscal year. CFTC Letter No. 20-08
SEFs or SEF CCOs Relief for a 60-day period for filing 4th quarter financial reports pursuant to regulation 37.1306(d), due prior to September 1, 2020 and no later than 120 days after the SEF’s fiscal year. CFTC Letter No. 20-08
DCMs Relief from certain audit trail requirements pursuant to CEA sections 5(d)(4) and (10). 3 conditions accompany this relief in the letter. Further, relief is subject to self-regulatory functions and compensating controls should be implemented. Extended to Sept. 30, 2020 CFTC Letter No. 20-09
CPOs Relief for filing an annual report on form CPO-PQR pursuant to regulation 4.27 for Small or Mid-Sized CPOs; and,

Relief until July 15, 2020, for filing Q1 2020 report on form CPO-PQR pursuant to regulation 4.27 for Large CPOs. Extended to July 15, 2020

CFTC Letter No. 20-11
CPOs Relief for 45 days after the due date for filing Pool annual reports with the NFA and distributing certified financial statements to pool participants, pursuant to regulations 4.7(b)(3) and 4.22(c), for reports due on or before April 30, 2020. Extended to July 15, 2020 CFTC Letter No. 20-11
CPOs Relief for 45 days after the end of the reporting period for distributing monthly or quarterly participant pool statements, pursuant to regulations 4.7(b)(2) or 4.22(b)(3), due on or before April 30, 2020. Extended to July 15, 2020 CFTC Letter No. 20-11
FB’s Relief from registration as an IB for 30.5 FBs to handle US Futures Market Orders, until September 30, 2020, subject to certain conditions being met as indicated in the letter. CFTC Letter No. 20-12
FCMs and IBs Relief to address net capital treatment of covered loans under the CARES Act until September 1, 2020. CFTC Letter No. 20-15
Principals and APs Relief for failure to submit a fingerprint card with Form 8-R until July 23, 2020 or within 30-days of the NFA’s announcement of its resumption of fingerprint processing. CFTC Letter No. 20-16
Various Extension of COVID-19 Letters set to expire June 30, 2020 extended to September 30, 2020. CFTC Letter No. 20-19

*This summary is a quick highlight of the No-Action letters published related to COVID-19. Not all details are included in this summary. Please review the entire corresponding No-Action letters for complete additional details.


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