CFTC Staff Permits Clearing Organizations to Use Trust Companies for Daily Settlement

TechFlow reported on November 6 that, according to a CFTC announcement, the Division of Clearing and Risk issued a no-action letter addressing whether derivatives clearing organizations may use trust companies to conduct daily settlement with clearing members.

According to the letter, clearing organizations may use trust companies for daily settlement, but must treat such trust companies as settlement banks in accordance with applicable CFTC requirements.

Source: TechFlow