CFTC — Press releases· CCollins·· 52 minutes agoSelectedAI score72
CFTC issues no-action letter on trust company participation in daily settlement
CFTC Staff Addresses Use of Trust Companies for Daily Settlements
AI brief
AI-assisted source summary · not independently verified. Content standards
CFTC’s Division of Clearing and Risk issued a no-action letter stating that derivatives clearing organizations may use trust companies to conduct daily settlements with clearing members. The condition is that clearing organizations must manage the trust company as a clearing bank in accordance with applicable CFTC requirements.
Why it matters
The no-action letter clarifies the regulatory treatment applicable when trust companies participate in daily settlements, providing specific guidance for derivatives clearing organizations assessing settlement arrangements.
Source:CFTC — Press releases · cftc.gov