CFTC extends Brexit-related no-action positions for derivatives trading
by@CFTC
Summary
The Commodity Futures Trading Commission (CFTC) announced on October 1, 2026, that it is extending temporary no-action positions related to Brexit to ensure regulatory continuity in derivatives trading and clearing between the United Kingdom and the United States. This extension builds on a previous collaboration initiated with the Bank of England and regulatory bodies in 2019, which aimed to provide certainty amid the UK's withdrawal from the EU. The CFTC's ongoing efforts involve working with UK authorities to potentially issue formal comparability determinations and exemptive orders for certain UK entities in the future.
Analysis
Bank of England: The Bank of England is the central bank of the United Kingdom responsible for monetary policy and financial stability. It joined the CFTC in a 2019 joint statement addressing continuity of derivatives activities between the UK and the United States after Brexit, and the current extension maintains that coordinated approach. Financial Conduct Authority: The Financial Conduct Authority is the UK conduct regulator that oversees financial markets and firms to promote integrity and protect consumers. It contributed to the 2019 CFTC statement on post-Brexit derivatives trading continuity between the UK and US, and remains central to the CFTC's review of UK regulatory comparability. Prudential Regulation Authority: The Prudential Regulation Authority is the UK regulator responsible for the safety and soundness of financial firms including banks and insurers. It participated alongside the Bank of England and Financial Conduct Authority in the 2019 CFTC statement on Brexit-related derivatives continuity, supporting the ongoing no-action relief. Commodity Futures Trading Commission: The Commodity Futures Trading Commission is the independent U.S. federal agency that regulates the derivatives markets, including futures, options, and swaps. Its Market Participants Division and Division of Market Oversight are extending temporary no-action positions to preserve regulatory certainty for cross-border derivatives trading and clearing with the UK following Brexit. Brexit Coordination: Ongoing collaboration between the CFTC and UK authorities seeks to replace temporary relief with formal exemptive orders where appropriate for UK entities. Regulatory Continuity: The CFTC is extending prior no-action positions to sustain certainty in UK-US derivatives trading and clearing while it evaluates UK law for potential comparability determinations.
Categories
macropolitics