July 22, 2018

July 20, 2018

Subscribe to Latest Legal News and Analysis

CFTC Staff Issues No-Action Relief to Futures Commission Merchants and Introducing Brokers Regarding Capital Treatment of Deferred Tax Liabilities From Changes in Accounting Principles

On January 5, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight issued a no-action letter authorizing registered futures commission merchants and introducing brokers to exclude deferred tax liabilities that are directly related to the capitalized costs of certain non-allowable assets when computing their adjusted net capital under Regulation 1.17. The tax deferred liabilities reflect differences between book accounting and tax accounting that result from changes to generally accepted accounting principles that require the capitalization of certain costs that are immediately expensed for income tax purposes.

CFTC Letter No. 18-01 is available here.

©2018 Katten Muchin Rosenman LLP

TRENDING LEGAL ANALYSIS


About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm
Partner

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.

...

312-902-5372
Timothy Nolan, Katten Law Firm, Chicago, Corporate Law Attorney
Associate

Timothy Nolan concentrates his practice on transactional, corporate and regulatory aspects of financial services matters. Timothy 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, Timothy served as the CEO and the president of the board of directors of a small commercial real estate company and spent 10 years in the scrap recycling industry, including several years as general manager of a mid-sized company. In his time in the scrap recycling industry, Timothy worked with traders, brokers, importers and exporters, and other industry professionals around the world relating to ferrous, non-ferrous and precious metal recycling, together with paper and plastic recycling.

312-902-5447