CFTC Extends Brexit-Related No-Action Positions for UK Derivatives Activity
The Commodity Futures Trading Commission’s Market Participants Division and Division of Market Oversight have extended temporary no-action positions related to Brexit. The positions concern the continuity of derivatives trading and clearing activity between the United Kingdom and the United States following the UK’s withdrawal from the European Union.
In its 1 October announcement, the CFTC said the extension continues positions set out in Staff Letter 24-11, as amended by Staff Letter 26-10. The agency said it is maintaining the relief while it works with relevant UK authorities to analyse UK law and, where appropriate, issue UK comparability determinations and exemptive orders for certain UK entities.
The CFTC originally coordinated with the Bank of England, Prudential Regulation Authority and Financial Conduct Authority in 2019 to provide regulatory certainty around cross-border derivatives trading and clearing. The latest action does not itself create new trading products or alter a retail broker’s customer terms; it preserves the temporary staff positions while the longer-term UK framework is considered.
Why it matters
For traders using futures, swaps, or derivatives products connected to UK dealers, venues, clearing members or liquidity providers, cross-border regulatory continuity can affect whether firms can continue established trading and clearing arrangements. The extension reduces the risk of an immediate regulatory gap while the CFTC assesses permanent or more formal treatment for relevant UK entities.
The announcement is especially relevant to institutional market participants and intermediaries with UK-US derivatives operations. Retail traders may see the impact indirectly through the products, liquidity and infrastructure their broker uses.
What to watch next
Watch for CFTC comparability determinations or exemptive orders covering UK entities, and for related notices from UK regulators, trading venues and clearinghouses. Firms relying on the staff positions should also review the referenced CFTC staff letters for their precise scope and conditions.