regulation
CFTC Issues No-Action Letter to Kraken Derivatives Exchange on Dormancy Procedures
The CFTC's Division of Market Oversight has issued a no-action letter to Kraken Derivatives Exchange, addressing procedures related to dormancy. This temporary position responds to Kraken's request for an extension of a previous no-action stance.
AS1 NewsSource: cftc.gov
The Commodity Futures Trading Commission’s Division of Market Oversight announced it has granted a no-action letter to Kraken Derivatives Exchange Inc., formerly known as Small Exchange Inc., a designated contract market. The letter pertains to specific procedures concerning dormancy, a process related to inactive accounts or contracts. This no-action position is limited in time and subject to the terms outlined in the official letter. It follows Kraken’s request to extend the no-action relief previously granted under CFTC Letter No. 25-46. The decision allows Kraken to operate under certain conditions without facing enforcement action during the specified period, providing regulatory clarity for the exchange’s dormancy procedures.
This regulatory clarification may influence how crypto derivatives exchanges manage dormant accounts, potentially setting a precedent for other market participants seeking similar relief.