CFTC Grants ElectronX No-Action Relief for Mixed Direct and Intermediated Self-Cleared Contract Repo

Key Takeaways

• CFTC Division of Market Oversight Letter 26-24 allows Electron Exchange DCM, LLC (ElectronX) to keep applying the "exclusively self-cleared contracts" reporting framework to its direct participants, even though FCM intermediation is now permitted.
• ElectronX will report on behalf of direct participants, while FCM clearing members must still meet standard reporting obligations for intermediated accounts.
• Compliance teams at exchanges, FCMs, and direct traders should review how reporting responsibilities are now allocated.

Deep Dive

What changed and why it matters.** Under Regulations 15.00(h), 17.00(i), 17.01(d), and 16.00(c), a DCM that lists exclusively self-cleared contracts submits large trader position and ownership and control reports on behalf of all clearing members. Regulation 16.00 clearing member reports are not required. ElectronX's amended Order of Designation (August 10, 2026) now permits intermediation. Once FCMs participate, the contracts no longer meet the definition, which would have forced ElectronX to file Regulation 16.00 reports and would have required direct participants, including retail traders, to file Part 17 reports themselves. The Division issued a no-action position (dated September 2, 2026, in response to a request dated August 12, 2026) to avoid this result for direct participants. It reasoned that the approach is consistent with the rules' purpose of allocating reporting duties by capability.

**Scope and conditions.** The Division will not recommend enforcement against ElectronX or its participants if (1) ElectronX does not file Regulation 16.00 reports for clearing members that are direct participants, or (2) direct participants do not file Regulation 17.00 or 17.01 reports for their ElectronX positions. The relief is conditioned on four requirements: - ElectronX continues Regulation 16.00 reporting for FCM clearing members that carry accounts for non-direct participants. - ElectronX files Regulation 17.00 and 17.01 reports on behalf of direct participants. - ElectronX timely collects from direct participants all information needed for those reports. - Direct participants remain responsible for Part 18 obligations, such as special calls for Form 40.

ElectronX acknowledged a reporting gap: the Commission will see only special account reports for direct participants, not the full clearing member picture. The Division accepted this as consistent with the existing exclusively self-cleared framework.

**Timelines and limits.** No specific compliance deadline is imposed. The letter expires on the compliance date of any final Commission action on this matter. It is staff-level only and does not bind the Commission or other staff. It does not excuse compliance with other CEA, regulatory, or securities law requirements, and it is void if material facts change or were omitted. The Division may modify, suspend, or terminate it at its discretion.

**Recommended actions.** - ElectronX should confirm its data collection, controls, and Regulation 17.02 form-and-manner processes can support timely reporting for direct participants. It should also split reporting workflows cleanly between direct and intermediated accounts. - FCMs onboarding to ElectronX should confirm their Regulation 16.00 and Part 17 obligations for customer accounts, and avoid assuming the exchange covers them. - Direct participants, including retail, should confirm they provide complete and timely information to ElectronX and remain aware of Part 18 special call duties. - All parties should document reliance on the letter, monitor for changed facts, and watch for any Commission rulemaking.

**Risk implications.** The main risks are regulatory reporting failures from data gaps or delays at the exchange, misallocated responsibility in mixed-participant structures, and loss of relief if facts change. Concentrating reporting at the DCM also creates operational dependency and a single point of failure. Reduced Commission visibility into non-special direct-participant accounts may attract scrutiny, which supports maintaining strong surveillance and data quality.

Source: Commodity Futures Trading Commission