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CFTC extends time limit for FCMs obtaining acknowledgement letters from depositories

The US Commodity Futures Trading Commission’s (CFTC) Division of Oversight will provide additional time for futures commission merchants (FCMs) to comply with Commission regulations requiring FCMs to obtain acknowledgement letters from certain depositories. 

DSIO will provide no-action relief until 17 October 2014.
 
Commission regulations 1.20(d)(3)(i) and (ii), 1.26, 22.5, 30.7(d)(3)(i) and (ii), and the appendices require that FCMs deposit customer funds only with depositories that have provided the FCM with an acknowledgement letter in which such depositories agree to provide the DSIO director (or such director’s designees) with direct, read-only electronic access to transaction and account balance information for FCM customer accounts.
 
Since some depositories require the Commission to enter into a standard online access agreement, many depositories to FCMs have not provided the acknowledgement letters required by Commission regulations.
 
The depositories require an online access agreement to be executed before the depository may provide the DSIO director with the required read-only access to transaction and account balance information for FCM customer accounts.
 
The division’s review, negotiation, and execution of such agreements will not be completed by 12 July, the compliance date for obtaining the acknowledgement letters.

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