The U.S. Commodity Futures Trading Commission (CFTC) has adopted added compliance relief measures as it seeks to enable firms to cope with the effects of the Covid-19 outbreak.
The CFTC issued no-action letters for swap execution facilities (SEFs) and certain designated contract markets (DCMs), stemming from the need for “social distancing” that has caused many firms to move to remote working arrangements.
Subject to certain conditions, the CFTC has granted DCMs relief from certain audit trail requirements due to the closing of certain trading floors and the displacement of floor brokers.
It also provided relief for SEFs from certain recording and record-keeping requirements, and it will allow extensions on the deadline for submitting certain reports, such as annual compliance reports, to enable firms to focus on “supporting orderly and resilient markets while implementing recommended practices to curtail the spread of Covid-19.”
“These prudent, targeted, and temporary actions will help facilitate orderly trading and liquidity in our derivatives markets. The CFTC remains squarely focused on promoting their integrity, resilience, and vibrancy through sound regulation,” CFTC chairman Heath Tarbert said in a statement.
“At my direction, the CFTC has pivoted our approach to take this challenge head on and we have dedicated appropriate resources to adapt to market developments,” he added.
The relief expires on June 30.
Previously, the CFTC announced similar measures for a variety of other derivatives market players.