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CFTC staff says derivatives clearing organizations may use trust companies for daily settlements if treated like settlement banks
Summary
The Commodity Futures Trading Commission's Division of Clearing and Risk on Thursday issued a no-action letter on whether derivatives clearing organizations (DCOs) may use trust companies to conduct daily settlements with clearing members, the CFTC said.
According to the letter, a DCO may use a trust company for daily settlements if it treats the trust company as it would a settlement bank under applicable CFTC requirements.
The staff release does not change the Impartial Access Requirements interpretation the Commission issued separately the same day, and it does not itself authorize any specific crypto product.
Trust companies are commonly used in digital-asset custody and settlement stacks, so the guidance may matter for how crypto-linked clearing venues structure bank-like settlement relationships, without naming any particular firm or token.
Key facts
- The CFTC said the Division of Clearing and Risk issued the no-action letter addressing use of trust companies for daily settlements with clearing members.
- Condition stated by the CFTC: a DCO may use a trust company for daily settlements if it treats that trust company as it would a settlement bank under applicable CFTC requirements.