CFTC’s Division of Clearing and Risk Issues Extension of No-Action Letter for Taiwan Futures Exchange

The U.S. Commodity Futures Trading Commission (CFTC) has published a press statement to announce that its Division of Clearing and Risk (DCR) has extended its no action relief to the Taiwan Futures Exchange (TAIFEX) in connection with the clearing of certain derivatives.
Specifically, in its corresponding CFTC Staff Letter 23-12, the DCR states that it will not recommend any enforcement action for the clearing of „swaps for the proprietary trades of TAIFEX clearing members that are U.S. persons or affiliates of U.S. persons“ despite the fact that the exchange is not a registered U.S. derivatives clearing organization (DCO) in accordance with Commission Rule 17 CFR Part 39, § 39.6 under the Commodity Exchange Act (CEA). As a corresponding TAIFEX application for an official exemption from the registration requirement is still pending, this no-action relief is temporary up to the date upon which the exemption is granted or March 15, 2024 whichever is earlier.