RegAlert2015-01-23 | CFTC Staff Letter 15-02Added · Updated
CFTC Staff Letter 15-02: No-Action Relief for Introducing Brokers’ Compliance with Financial Reporting and Capital Requirements
The Division of Swap Dealer and Intermediary Oversight grants foreign-domiciled introducing brokers relief from specific financial reporting and capital computation requirements under Regulations 1.10 and 1.17. These entities may prepare financial statements using local accounting principles and report balances in local currency, provided they also submit a U.S. dollar-converted statement to demonstrate compliance with the $45,000 adjusted net capital minimum. The relief exempts these brokers from foreign currency capital charges for funds deposited in their home jurisdiction, while requiring all filings to be in English and including a computation of minimum capital requirements. Additionally, the Division will not recommend enforcement action against brokers treating commission receivables from over-the-counter swap customers as current assets if the amounts are billed and aged no more than thirty days.
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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000
Facsimile: (202) 418-5521 www.cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Thomas J. Smith
Acting Director
CFTC Letter No. 15-02
No-Action
Division of Swap Dealer and Intermediary Oversight Re: Request for No-Action Relief for Introducing Brokers’ Compliance with Certain Financial Reporting and Capital Computation Requirements under Regulations
1.10 and 1.17
Introduction
The Division of Swap Dealer and Intermediary Oversight (“DSIO” or “Division”) of the Commodity Futures Trading Commission (“CFTC” or “Commission”) is issuing this no-action relief in response to requests from several entities registered, or pending registration as, introducing brokers (“IBs”). These entities have requested relief from certain of the Commission’s financial reporting requirements and capital requirements applicable to IBs under Commission Regulations 1.10 and 1.17, respectively. 1 The Division has considered the requests and is issuing this no-action letter subject to the conditions discussed below. Background Prior to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), 2 the term “introducing broker” was defined under the Commodity Exchange Act (“Act”) to mean:
[A]ny person…engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market or derivatives transaction execution facility who does not accept any money, securities, or
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Lineage: In force
Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.