CFTC Expands No-Action Policy for Passive Software Providers

The U.S. Commodity Futures Trading Commission (CFTC) has expanded its no-action position for providers of 'passive software' that supports users' derivative trading. Under the new policy, companies and their personnel will not face sanctions for not registering as introducing brokers (IBs) or associated persons (APs) of IBs, provided they meet certain conditions. The measure applies specifically to software supporting user transactions through registered futures commission merchants (FCMs), introducing brokers, and designated contract markets (DCMs). The CFTC's Market Participants Division (MPD) announced the expansion on July 17 (local time).