Operational Resilience / Outsourcing in United States

What Changed

• The CFTC FAQs address implementation questions arising from two prior staff positions:
• Tokenized Collateral Guidance (CFTC Staff Letter 25-39): Established the framework allowing futures commission merchants (FCMs) and designated contract markets (DCMs) to accept digital assets as...
• No-Action Position (CFTC Staff Letter 26-05): Provided temporary relief permitting FCMs to accept payment stablecoins, Bitcoin, and Ether as customer margin collateral, subject to specific...
• How registered entities should operationalize tokenized collateral acceptance
• Compliance with notification and operational risk management requirements

Suggested Considerations

• *Immediate (0–30 days):
• *Asset Classification Audit: Map every crypto asset in your portfolios, products, or platforms against the five-category framework (digital commodities, digital collectibles, digital tools, stablecoins, digital securities) established in the March 17 joint interpretation.
• *Investment Contract Review: Identify any assets subject to active issuer promises of essential managerial effort—those remain securities regardless of category and cannot be treated as digital commodities.
• *FAQ Implementation Review: Obtain and review the full CFTC FAQs (available at https://www.cftc.gov/PressRoom/PressReleases/9200-26) to identify specific operational questions relevant to your entity type.
• *Notification Protocol Establishment: If relying on the no-action relief for tokenized collateral, establish procedures to notify the CFTC of significant operational, system, or cybersecurity issues affecting digital asset collateral use (required for first three months of relief).

Key Dates

References

• [1] sec.gov/newsroom/press-releases/2026-30-sec-clarifies-app...
• [2] consumerfinancialserviceslawmonitor.com/2026/02/cftc-and-...
• [3] klgates.com/Crypto-in-2026-The-Democratization-of-Digital...
• [4] genfinity.io/2026/03/17/sec-cftc-final-rule-digital-commo...
• [5] compliance-risk.com/sec-cftc-joint-crypto-asset-interpret...
• [6] cftc.gov/csl/26-09/download
• [7] sec.gov/files/rules/interp/2026/33-11412.pdf
• [8] fintechweekly.com/news/sec-bitcoin-ether-solana-digital-c...

What Changed

• The primary regulatory modification addresses a single-day exception to standard options exercise procedures:
• CEA Cut-Off Time Acceleration: The normal 5:30 p.m. ET deadline for submitting Contrary Exercise Advice was compressed to 10:00 a.m. ET on January 9, 2025.
• Exercise Instruction Acceptance Window: Members could not accept exercise instructions for either customer or non-customer accounts after 10:00 a.m. ET on that date.
• OCC Processing Unchanged: The Options Clearing Corporation's processing timeframes remained unaffected by the market closure.
• Restricted Exercise Classes: Exercises in non-expiring American-style, cash-settled index options and non-expiring American-style, cash-settled FLEX ETF option classes were prohibited on January 9,...

Suggested Considerations

• *Update Internal Procedures: Modify systems and workflows to enforce the 10:00 a.m. ET cut-off instead of the standard 5:30 p.m. ET deadline for January 9, 2025 options
• *System Configuration: Reprogram trading platforms, order management systems, and compliance monitoring tools to reject exercise instructions received after 10:00 a.m. ET on that date
• *Staff Communication: Notify all relevant personnel (trading desk, operations, compliance, customer service) of the accelerated deadline and restricted exercise classes
• *Customer Notification: Inform retail and institutional clients of the early cut-off time for options expiring on January 9, 2025
• *Submission Coordination: Ensure CEA submissions to exchanges and OCC occur within the compressed timeframe

Key Dates

References

• [1] finra.org/rules-guidance/notices/10-36
• [2] finra.org/sites/default/files/NoticeDocument/p121980.pdf
• [3] finra.org/rules-guidance/notices/94-102
• [4] finra.org/rules-guidance/notices/information-notice-20250103
• [5] finra.org/sites/default/files/2025-01/Info-Notice-2025010...
• [6] finra.org/rules-guidance/notices
• [7] finra.org/rules-guidance/notices/08-33
• [8] sec.gov/Archives/edgar/data/895421/000183988225000456/000...

What Changed

• - Removal of Settle Prep Day: NSCC Rule 50 amended to eliminate the settlement preparation stage from ACATS, effective October 17, 2025, streamlining the process for all securities...
• Mutual Fund/Options Synchronization: Eliminates the extra day for processing mutual funds and options via Fund/SERV, aligning their settlement with other assets; also removes the second day of...
• Overall Timeline Reduction: Full ACATS transfers now complete in 3-4 business days (previously longer), supporting faster asset access without manual processes.
• FINRA Rule 11870 remains unchanged but continues to mandate use of ACATS (when both firms participate), prompt validation/exceptions, and coordination to expedite transfers.[original notice]

Suggested Considerations

• Operational Readiness: Coordinate between transfer and settlement operations to handle shortened cycles and next-day settling; validate/except instructions within 3 business days per FINRA Rule 11870(b).[original notice]
• Exception Handling: Promptly resolve any transfer instruction exceptions (Rule 11870(b)(2)); ensure ACATS data meets minimum requirements to avoid rejections.
• System Updates: Migrate to new ACATS interfaces/formats ahead of October 2026 decommission; test for mutual funds, options, and complex assets.
• Contact FINRA/NSCC: Direct questions to Kathryn Mahoney (FINRA) at (646) 315-8428 or email; reference NSCC Important Notice A9646 for details.[original notice]
• Monitoring: Firms should already be compliant as enhancement launched October 17, 2025; address any post-implementation issues via DTCC support.

Key Dates

References

• [1] ftfnews.com/finra-reminds-firms-of-acatss-improvements/
• [2] finra.org/rules-guidance/key-topics/customer-account-tran...
• [3] advisorfinder.com/blog-posts/acat-transfer-guide-switch-b...
• [4] finra.org/sites/default/files/2023-04/MAP_Guidance_Owners...
• [5] sec.gov/files/rules/sro/nscc/2025/34-103890.pdf
• [6] finra.org/compliance-tools/weekly-archive/10292025
• [7] finra.org/rules-guidance/notices
• [8] sec.gov/files/rules/sro/nscc/2025/34-103542.pdf

What Changed

The final rule introduces the following substantive amendments: Exceptions for Swaps Intended to be Cleared (ITBC Swaps) Swap dealers and major swap participants are exempted from certain External Business Conduct Standards and swap trading relationship documentation requirements when executing swaps that are intended by the parties to be cleared contemporaneously with execution.

Suggested Considerations

• *Immediate Actions (Pre-Implementation)
• *Implementation Actions (Upon Effective Date)
• trade disclosure systems to remove PTMMM generation and delivery requirements
• based operations, review implications of superseded Staff Letter No. 23-01
• *Ongoing Compliance

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9157-25
• [2] cftc.gov/media/12866/federalregister121825/download
• [3] isda.org/2025/11/18/isda-and-sifma-comment-on-cftc-propos...
• [4] gibsondunn.com/derivatives-legislative-and-regulatory-wee...
• [5] sifma.org/advocacy/letters/revisions-to-business-conduct-...
• [6] skadden.com/insights/publications/2025/09/cftc-proposes-e...