July 15, 2019

July 15, 2019

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CFTC’s Division of Market Oversight Issues No-Action Letter Providing Reporting Parties With Additional Relief From OCR Final Rule Reporting Obligations

On September 25, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued Staff Letter No. 17-45 (Staff Letter), which both extends current relief, and provides additional relief, to reporting parties that must comply with the reporting obligations required by the ownership and control reports (OCR) final rule (OCR Final Rule). DMO is providing this relief in response to the compliance challenges reporting parties have encountered with respect to certain OCR reporting obligations.

The Staff Letter addresses these challenges, in part, by extending the no-action relief provided in Staff Letter No. 16-32. (For a more complete discussion of Staff Letter No. 16-32, please refer to the April 15, 2016, edition of Corporate and Financial Weekly Digest). Such relief includes, but is not limited to, (1) providing reporting parties with two additional days to accurately report the names of trading account and volume threshold account owners, and (2) increasing the threshold for reporting certain data from 50 contracts to 250 contracts. The Staff Letter also provides reporting parties with several additional types of new relief, including relief from (a) the requirement to file annual refresh updates of Forms 102A, 102B and 102S (conditioned on filing timely and complete change updates), and (b) providing information on Forms 40 and 40S regarding those who have direct or indirect influence on, or exercise authority over, but not control of, a reporting party’s trading (Question 12).

The relief provided in the Staff Letter will remain in effect until the earlier of (1) the later of the applicable effective date or compliance date of a CFTC action, such as a rulemaking or order addressing such obligation, and (2) September 28, 2020.

Staff Letter No. 17-45 is available here.

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About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.


Stanley V. Polit, Katten Muchin, Financial Services lawyer, Corporate Regulatory Matters Attorney

Stanley Polit concentrates his practice in transactional, corporate and regulatory aspects of financial services matters. Stan is able to provide legal services to a wide variety of clients including proprietary trading firms, hedge funds, broker-dealers, registered investment advisers, commodity trading advisers, financial institutions and general corporate clients.

Prior to joining Katten, Stan served as a council member for a national crisis management firm, where he specialized in crisis communication and merged media strategies. He has lectured extensively and conducted trainings related to these topics at numerous national and international conferences, including the National Communication Association's National Convention, the International Crisis and Risk Communication Conference and the Disaster Recovery Journal's World Business Continuity Conference.