CFTC Staff Broadens Relief for Trading Software Providers

Key Takeaways

• CFTC staff has broadened conditional registration relief for software providers connecting users to regulated derivatives markets.
• Providers must remain passive and meet obligations covering disclosures, recordkeeping and shared liability with their regulated partners.

Details

The Commodity Futures Trading Commission’s Market Participants Division announced on September 17, 2026 that qualifying passive software providers can rely on a broader no-action position. Subject to conditions, staff will not recommend enforcement for failing to register as an introducing broker, or as an associated person of one, solely for the covered software activities.

The US measure covers interfaces connecting users to registered futures commission merchants, introducing brokers and designated contract markets. It extends a framework previously available to Phantom Technologies under a March 17 letter.

Staff Letter 26-25 permits transaction-based fees, but providers cannot hold user assets, generate buy or sell signals, or choose how orders are routed or executed. Users must maintain direct relationships with the regulated firms and be able to access them independently.

Among ten conditions are conflict-of-interest disclosures, compliance records and filings with the division. Providers and their regulated partners must sign undertakings accepting joint and several liability for covered violations by the provider or its personnel.

The position lasts until relevant Commission rules or guidance take effect. It does not bind the full Commission, and staff can modify or withdraw it.

Market Analysis

The change gives other wallet and interface developers access to a framework previously limited to Phantom. Regulated partners remain central: their liability commitments make commercial agreements an important part of using the relief.

Sources: CFTC announcement and Staff Letter 26-25, both published September 17, 2026, linked above.

Note: This article is for news reporting purposes only and does not constitute investment advice.