The CFTC issued a no-action letter allowing clearing organizations to use trust companies for daily settlements

The U.S. Commodity Futures Trading Commission (CFTC) Clearing and Risk Division issued a no-action letter clarifying whether derivatives clearing organizations can use trust companies for the daily settlement of clearing members.

The letter states that derivatives clearing organizations may consider trust companies as settlement banks that meet applicable CFTC requirements, allowing them to use these for daily settlements.