CFTC Issues Advisory to Market Participants Ahead of Potential Government Shutdown

The CFTC has issued a staff advisory reminding brokers, exchanges, and clearing organizations to prepare for potential market disruptions during a lapse in government appropriations.

The Commodity Futures Trading Commission (CFTC) staff has issued an advisory regarding operational readiness and market stability during a potential lapse in federal government appropriations. The regulatory advisory was directed to futures commission merchants, introducing brokers, designated contract markets, derivatives clearing organizations, and registered futures associations. It addresses preparations concerning certain contract markets and potential disruptions that could occur if government funding lapses. Jointly released by the Market Participants Division, the Division of Clearing and Risk, and the Division of Market Oversight, the advisory reminds market participants to prepare for all foreseeable conditions that could arise while facilitating trading and clearing services for customers, clearing members, and other market participants. The CFTC noted that the advisory is designed to reinforce existing applicable regulatory requirements and does not create any new compliance obligations for regulated entities.