CFTC Division of Clearing and Risk issues no-action letter for Shanghai Clearing House
The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission today issued a no-action letter providing that DCR will not recommend the CFTC take enforcement action against Shanghai Clearing House (SHCH) for failing to register as a derivatives clearing organization (DCO).
The registration is required by Section 5b(a) of the Commodity Exchange Act. The regulator notes SHCH’s recently submitted updated application for an exemption from registration as a DCO.
Today’s no-action letter extends an earlier CFTC Letter, which expires July 31, 2022. The extension will last until the earlier of July 31, 2023 or the date on which the CFTC exempts SHCH from registration as a DCO.
The letter states that DCR does not plan to issue further extensions.
Today’s no-action letter is limited to SHCH’s clearing of the proprietary trades of U.S. clearing members and their affiliates.