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- The CFTC's Final Guidance on Actual Delivery: Five Things to Know
The CFTC's Final Guidance on Actual Delivery: Five Things to Know
April 6, 2020, Covington Alert
On March 24, 2020, the CFTC unanimously voted to adopt final interpretive guidance on when “actual delivery” of retail commodity transactions in virtual currencies occurs within the meaning of Section 2(c)(2)(D) of the Commodities Exchange Act, making them eligible to meet the exception from regulation as a futures contract. The CFTC previously published interpretive guidance in 2013 on the meaning of “actual delivery” for traditional commodities. With the increase in recent years of trading in cryptocurrencies and other virtual currencies, the CFTC has attempted to formulate an appropriate regulatory framework to delineate when actual delivery occurs for retail commodity transactions of in the cryptocurrency markets. In 2017, it sought public input through proposed guidance. The recent adoption of final guidance builds off of the 2017 proposed guidance and public comments to provide greater clarity on the applicability of the “actual delivery” exception to retail transactions in virtual currency.
March 18, 2020, Covington Alert
On March 17, 2020, the Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) and Division of Market Oversight (DMO) each released an announcement regarding a series of no-action letters in response to the ongoing global COVID-19 pandemic (see here for the DSIO announcement and here for the DMO announcement). The ...
February 3, 2020, Covington Alert
At an open meeting on January 30, 2020, the Commodity Futures Trading Commission (“CFTC”) voted 3–2 to approve a proposed rule that would impose federal position limits on derivatives. The proposed rule, if finalized, would prevent excessive speculation while allowing bona fide hedgers in agricultural, energy, metals, and other commodities markets to hedge risk ...
January 28, 2019, Covington Alert
The past few weeks have been chaotic for both Brexit negotiations and UK politics overall. On January 15, 2019, British Prime Minister Theresa May’s Brexit plan succumbed to historic defeat in Parliament.