CME Group has provided an update regarding regulatory relief concerning COVID-19 pandemic. The regulatory relief issued by the CFTC in response to the COVID-19 pandemic is set to expire on January 15, 2021.
While CME Group is currently in discussions with the CFTC to request an extension of that relief in some form, if no such extension is granted, the relief from various Exchange rules detailed in a Special Executive Report will also expire on January 15, 2021.
While CME Group believes that relief will be extended to permit Floor Brokers and other individuals to continue to work from locations other than the trading floor or the premises of an entity registered to conduct customer business, it is unclear if relief will be extended with respect to written recordkeeping and oral recording requirements under CFTC Regulation 1.35.
If the relief with respect to CFTC Regulation 1.35 is not extended, the relief granted by the Exchanges with respect to the requirements concerning the written recording and timestamping of customer orders and the oral recording requirements will also expire. If that occurs, affected individuals must be able to fully comply with the requirements of CFTC Regulation 1.35 and corresponding Exchange rules in order to continue to handle customer orders.
Failure to do so may result in disciplinary action by the Exchanges and/or the CFTC.
The information contained in this Special Executive Report will be updated as soon as CME has additional details on the matter.