The CFTC’s Market Participants Division next issued an exemption via letter 21-07, permitting an introducing broker not to file a required CFTC form for 2020. Staff reasoned that because the broker in question had registered as an introducing broker with 21 days remaining in 2020, had a securities broker-dealer application pending with the Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Agency (“FINRA”), and represented that it would not conduct any introducing broker business until its broker-dealer registration was complete, the broker needn’t file Form 1-FR-IB for 2020. Form 1-FR-IB reports information about introducing brokers’ net capital positions as required by the Commodity Exchange Act, and is similar to the form completed by futures commission merchants (Form 1-FR-FCM).

For the full text of this letter, please see: