CFTC staff will not recommend action against clearing houses that use trust companies for daily settlement
In a no-action letter dated 5 November, the CFTC's Division of Clearing and Risk said it will not recommend enforcement against any derivatives clearing organisation (DCO) that uses a trust company for daily settlements with clearing members, provided the DCO treats the trust company as if it were a settlement bank under Regulations 39.14(c) and (d).