CFTC Extended Brexit Derivatives Trading Positions
International firms can maintain existing trading continuity as regulators work toward final comparability determinations.
Updated on Oct. 1, 2026 in International Trade
The Commodity Futures Trading Commission has extended temporary no-action positions regarding Brexit-related derivatives trading and clearing. This decision allows continued market access while regulators finalize the analysis of UK laws for potential comparability.
Why it matters
The extension prevents regulatory uncertainty for firms operating across the U.S. and UK, maintaining essential market infrastructure. It provides a bridge for market participants while the agency evaluates how to formalize long-term oversight of UK entities.
The agency issued Staff Letter 26-28 to extend positions previously detailed in Letters 24-11 and 26-10. This ensures continuity for derivatives trading and clearing between the United States and the United Kingdom.
The players
Commodity Futures Trading Commission
The independent federal agency that regulates the U.S. derivatives markets, including swaps and futures trading.
The details
The Commodity Futures Trading Commission is using no-action relief to bypass immediate compliance hurdles that would otherwise disrupt cross-border derivatives activity post-Brexit. By extending these positions, the agency grants firms a period of legal stability while its staff conducts deep-dive analysis into UK regulations. This process is intended to culminate in official comparability determinations, which will establish permanent frameworks for how UK firms interact with U.S. markets.
Timeline
February 25, 2019: The CFTC issued its original statement on derivatives trading and clearing continuity.
October 1, 2026: The CFTC announced the current extension of its no-action positions.
Market Landscape
This extension marks the latest phase in the agency's response to the 2019 Brexit derivatives trading continuity statement. It follows a multi-year trend of temporary regulatory relief used by U.S. and UK authorities to prevent market fragmentation.
Firms utilizing U.S.-UK trading channels should monitor the progress of comparability determinations to prepare for eventual shifts in compliance requirements. Maintaining awareness of Staff Letter 26-28 is critical for ensuring near-term operational alignment.
The takeaway
Regulators are choosing extended temporary relief over immediate policy pivots to ensure market stability during complex international transitions. Operators should bookmark the CFTC's staff letter portal to track when permanent comparability frameworks replace these stopgap measures.
Further reading
For more on evolving cross-border rules, see International Trade.
More information
Access the official CFTC Staff Letter 26-28 for full regulatory details.
