CFTC Staff Extends No-Action Position for Certain Reporting Obligations Under the Ownership and Control Reports Final Rule

On September 22, 2023, the U.S. Commodity Futures Trading Commission (CFTC) announced the extension of previously granted relief regarding the mandatory Ownership & Control Reporting (OCR) whose primary purpose it is to collect information about the ownership and control of positions in futures and options contracts as well as swaps in order to monitor market participants and identify potential market manipulation. Specifically, the Commission’s subdivision for market oversight (DMO) issued a follow-up no-action relief letter to grant the below noted relief relating to the reporting of trades under statutory instruments 17 CFR Part 17, Part 18, and Part 20.
Thereafter, reporting entities, including futures commission merchants (FCMs), clearing members, swap dealers (SDs), and major swap participants (MSPs) are relieved from the following – as quoted:
– Accurately reporting a trading account owner’s (TAC) and volume threshold account (VTA) owner’s name within three business days following the day on which the account became reportable;
– Failure to report certain TAC and VTA controller (VTAC) identifying information;
– Failure to provide the level of confidence a reporting party has in the accuracy of the information provided to it by its customers or counterparties;
– Failure to report a volume threshold account based on a reportable trading volume level of 50 contracts (provided such reporting party reports instead based on a reportable trading volume level of 250 or more contracts per day);
– Failure to report on Form 102S certain omnibus account originator and consolidated account owner information (conditioned on electronically reporting consolidated account counterparty information instead);
– Failure to report additional TAC and VTAC identifying information (conditioned on DMO being able to obtain TAC-identifying information from the special account controller and VTAC-identifying information from the VTA owner or the reporting firm);
– Failure to submit refresh updates to Forms 102A, 102B, and 102S (conditioned on filing timely and complete change updates);
– Use of the same contact information for all 10% owners and parent companies (Identified Party) on question 8 on Forms 40 and 40S (conditioned on the means of communication provided being monitored by a person or persons who promptly provide(s) contact information for a representative of the relevant Identified Party authorized to discuss OCR information with CFTC staff);
– Failure to answer question 12 on Forms 40 and 40S regarding those who directly or indirectly influence or exercise authority over, but do not control, a reporting party’s trading; and
– Failure to file change updates to Forms 40 or 40S other than in response to a special call pursuant to §§ 18.04 or 20.5(b).