Two CFTC divisions have extended the temporary bridge that lets specified UK derivatives activity continue on the basis of pre-Brexit EU comparability and venue-exemption decisions. Staff Letter 26-28 runs until the earlier of a covering UK-specific Commission action or 31 December 2027. It supersedes Letter 24-11 immediately.[1][2]
The extension matters because the permanent legal work promised in the 2019 UK-US continuity statement is still unfinished. The Commission made comparability determinations and venue exemptions for the EU framework before Brexit; staff has repeatedly preserved a UK route while analysing whether corresponding UK determinations and orders should be issued.[6][1][4]
The Market Participants Division and Division of Market Oversight issued the letter as a staff enforcement position. It binds the issuing divisions rather than the Commission. The dealer route draws on existing EU determinations covering certain entity-level rules, transaction-level rules and margin requirements for uncleared swaps.[2][1]
The bridge has separate dealer and venue limbs
What Staff Letter 26-28 covers
| Beneficiary | Temporary position | Earlier end trigger |
|---|---|---|
| Registered swap dealers | For specified requirements, staff will not recommend enforcement where the dealer follows incorporated UK law on the same conditions as the relevant EU comparability determination. | Effective date of a covering UK comparability determination.Source 2Source 3 |
| Named UK MTFs and OTFs | Staff will not recommend action for operating without SEF registration when the facility is listed in the letter’s appendix and its conditions are met. | Effective date of a CEA section 5h(g) exemption for the relevant UK facilities.Source 2 |
| Counterparties with a trade-execution duty | Execution on an eligible UK facility can satisfy the scoped no-action position. | The corresponding venue exemption or 31 December 2027.Source 2 |
For a dealer, the mapping starts with the particular US requirement covered by an EU comparability determination, then the corresponding incorporated UK rule and the conditions attached to that determination. For a venue, the mapping starts with the exact legal facility in Appendix A. The March addition of OptAxe Limited and Capitolis UK Limited is carried into the operative October list; affiliates and similarly branded platforms require their own basis for coverage.[2][5]
The letter specifies the duties surrounding an eligible execution
Trades executed on eligible UK facilities retain applicable reporting under Parts 43 and 45, swap-trading eligibility and clearing requirements. For a US customer position subject to section 4d that is intended to be cleared, the letter requires a registered futures commission merchant and a registered DCO. Its specified proprietary and mandatory-clearing routes can use a registered or exempt DCO, subject to the customer-position restriction.[2]
That makes relief a requirement-by-requirement assessment. An eligible venue can support the scoped execution duty while the trade continues through its separate reporting, counterparty and clearing checks. Firms also need the current letter: 26-28 superseded 24-11 immediately on issuance.[2][3]
How the bridge has evolved
| Date | Development | Status |
|---|---|---|
| 25 February 2019 | UK and US authorities set out continuity measures for post-Brexit derivatives trading and clearing. | Policy commitment and temporary bridge architecture.Source 6 |
| 29 August 2024 | Announcement of the Staff Letter 24-11 extension of the temporary positions. | Superseded by Letter 26-28.Source 4Source 2 |
| 24 March 2026 | The eligible-facility appendix was amended to add two UK venues. | The current October appendix controls.Source 5Source 2 |
| 1 October 2026 | Staff Letter 26-28 extended the bridge to the earlier of relevant Commission action or end-2027. | Current staff position.Source 1Source 2 |
The next legal trigger is the effective date of a covering UK comparability determination or a UK venue-exemption order under section 5h(g), depending on the relief used. The common outside date is 31 December 2027. Monitoring each route separately matters because a Commission action can replace one part of the bridge before the other.[2][1]
Sources & further reading
- CFTC staff extends Brexit-related no-action positions Commodity Futures Trading Commission · 1 Oct 2026 · Accessed 16 Oct 2026
- CFTC Staff Letter 26-28: extension of Brexit no-action positions Commodity Futures Trading Commission · 1 Oct 2026 · Accessed 16 Oct 2026
- CFTC Staff Letter 26-28 metadata and covered regulation parts Commodity Futures Trading Commission · 1 Oct 2026 · Accessed 16 Oct 2026
- CFTC Staff Letter 24-11 extension of Brexit-related positions Commodity Futures Trading Commission · 29 Aug 2024 · Accessed 16 Oct 2026
- CFTC adds OptAxe and Capitolis UK to the eligible-facility list Commodity Futures Trading Commission · 24 Mar 2026 · Accessed 16 Oct 2026
- UK and US authorities announce continuity measures for post-Brexit derivatives Commodity Futures Trading Commission · 25 Feb 2019 · Accessed 16 Oct 2026