U.S. derivatives regulators are providing a variety of relief to dealers and brokers, citing the impossibility of compliance with certain requirements due to disruptions caused by the Covid-19 outbreak.
The U.S. Commodity Futures Trading Commission (CFTC) issued a series of “no-action letters” that provide an assortment of temporary relief to a variety of firms, including futures commission merchants, introducing brokers, swap dealers, retail foreign exchange dealers, floor brokers and others.
“The spread of coronavirus has caused compliance with certain CFTC requirements to be particularly challenging or impossible because of displacement of registrant personnel from their normal business sites due to social distancing and other measures,” the CFTC said.
Among other things, the regulator is providing relief from rules that require firms to record voice trading and other telephone communications; from requirements to be located on-site for certain activities; and from certain time-stamping requirements.
“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,” said CFTC chairman Heath Tarbert.
“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.