CFTC Staff Addresses Use of Trust Companies for Daily Settlements

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Official release

Source material from Commodity Futures Trading Commission. The wording below is the issuer’s statement.

WASHINGTON — The Commodity Futures Trading Commission’s Division of Clearing and Risk today issued a no-action letter addressing whether derivatives clearing organizations may use trust companies to conduct daily settlements with clearing members.

According to the letter, a derivatives clearing organization may use a trust company for daily settlements if it treats the trust company as it would a settlement bank under applicable CFTC requirements.

Release text attributed to Commodity Futures Trading Commission. Consult the official publication for any subsequent corrections or updates.