The Commodity Futures Trading Commission’s (CFTC) Market Participants Division has issued a no-action letter to the Structured Finance Association. This action pertains to qualifying credit risk transfer transactions conducted by member financial institutions and addresses certain requirements for commodity pool operators.
According to the CFTC, this no-action letter provides clarity regarding regulatory obligations for these specific transactions. The agency did not provide further details on which CPO requirements are affected or how many institutions may benefit from this relief.
The announcement comes as part of ongoing efforts by the CFTC to address regulatory issues in the evolving market for structured finance products.
