The Commodity Futures Trading Commission (CFTC) issued Letter No. 20-28 on Sept. 15, 2020. Letter 20-28 addresses issues of relevance both for futures commission merchants (FCMs) as well as asset managers trading separate accounts on behalf of institutional customers. Letter 20-28 provides limited interpretive and no-action relief from certain provisions of CFTC Rule 1.56 – Prohibition of guaranties against loss. Letter 20-28 is the latest regulatory response triggered by a pair of regulatory alerts (Alerts) issued by the Joint Audit Committee (JAC). The JAC includes representatives from CME Group, ICE Futures and the National Futures Association.

Read the full GT Alert, “Commodity Futures Trading Commission Issues Time-Limited Relief from CFTC Rule 1.56.”