Commodity Futures Trading Commission staff has set out a conditional no-action position for derivatives clearing organizations that use trust companies for daily settlements with clearing members. The position requires those clearing organizations to apply the settlement-bank risk controls and transfer-finality requirements in the existing rule.
The Division of Clearing and Risk issued Letter 26-30 on Nov. 5, 2026, responding to a request that the letter says Nodal Clear submitted on Oct. 29. Although Nodal linked its request to possible digital-asset collateral use, the staff response addresses settlement arrangements. It does not approve digital assets as margin collateral.
A staff position available to any DCO
The Division says it will not recommend Commission enforcement against any derivatives clearing organization, or DCO, that uses a trust company for daily settlements with clearing members, provided it treats the trust company as if it were a settlement bank under Regulation 39.14(c) and (d). The CFTC announcement summarizes the same condition.
The distinction matters because Regulation 39.14 defines a settlement bank as a bank maintaining an account used for settlement. The letter gives DCOs a staff enforcement position on using a trust company while leaving the regulation’s text intact.
Its scope extends beyond the requester, but its authority has explicit limits. The letter reflects the Division’s views only, is not binding on the Commission and concerns enforcement action rather than a legal conclusion. Other applicable requirements still apply, and the Division may change or terminate its position.
Risk controls and finality remain the conditions
Under paragraph (c), a DCO’s arrangements must eliminate or strictly limit credit and liquidity exposure to its settlement banks. To rely on the letter for a trust company, the DCO must apply documented criteria covering capitalization, creditworthiness, access to liquidity, operational reliability, and regulation or supervision.
The obligations continue after selection. The DCO must monitor the institution against its criteria, track concentration and exposure, consider potential losses and liquidity pressure if its largest settlement bank fails, and take reasonably necessary action to limit risk.
Paragraph (d) addresses whether settlement transfers are final and occur as agreed. Agreements must make transfers irrevocable and unconditional no later than the debit or credit to the account, while allowing error-correction terms. They must also specify transfer timing, and the DCO must routinely confirm that transfers occur according to the agreements.
Daily settlement obligations also remain in place. Paragraph (b) separately requires settlement at least once each business day and the capacity for intraday settlement. Letter 26-30 addresses paragraphs (c) and (d); it does not suspend paragraph (b).
Why the digital-asset rationale is not collateral approval
According to the letter, Nodal represented that state-regulated trust companies are among the leading digital-asset custodians and that clarification would facilitate DCO acceptance of digital assets as margin collateral. Those are the requester’s representations recorded by the Division. The original request letter was not included in the official record reviewed for this report.
The response does not determine which assets a DCO may accept as collateral. Nor does the use of a trust company establish that its settlement account holds digital assets. A reader assessing a future arrangement would need to distinguish the institution handling daily settlement from the assets accepted as margin and the authority governing that acceptance.
A separate staff letter issued Feb. 6, 2026, Letter 26-05, concerns conditional treatment of certain digital assets and payment stablecoins accepted by futures commission merchants as customer margin collateral. That position comes from a different Division and addresses a different entity and regulatory context. It should not be read into Letter 26-30 as a DCO collateral authorization.
Implementation is the next evidence to watch
At the Nov. 8 reporting cutoff of 02:09 UTC, the reviewed primary sources did not identify a DCO that had implemented a trust-company settlement arrangement under the new letter. They also did not name a selected trust company, confirm a collateral type, or report transactions or volumes.
The next material developments would be a DCO announcing an arrangement, Commission or staff action changing the position, a rulemaking revising Regulation 39.14, or a DCO identifying digital assets accepted as collateral under applicable authority. For now, the documented change is a conditional staff enforcement position, with the DCO responsible for applying the prescribed settlement controls.
Editorial illustration: CRYPTO MAIN NEWS / OpenAI. Generic clearing-operations setting; not an actual firm, agency office or event.
Investment disclaimer: This article is provided for general information only and does not constitute investment, financial, legal or tax advice. Digital assets are volatile, and all investment decisions and their consequences are your own responsibility.