The CFTC’s Division of Market Oversight on Wednesday issued CFTC Letter No. 26-18, granting Cboe Digital Exchange, LLC, conditional no-action relief from the agency’s dormancy rules for designated contract markets.
Cboe Digital, which has held its DCM designation since 2011, would otherwise be deemed dormant on June 6, having recorded no trading for 365 days. Normally, a dormant DCM must reinstate its designation before listing products.
The relief allows Cboe Digital to list products for trading during a covered period without first going through the reinstatement process. The window runs until the earlier of April 6, 2027, or the close of business on the day a trade executes. Any trade during the period resets the 365-day dormancy clock.
The letter attaches several conditions. Products must be individually submitted to the CFTC under Part 40 procedures, with at least two business days’ notice per listing. Before the first listing, Cboe Digital must give ten business days’ notice and provide a written representation that it remains compliant with the Commodity Exchange Act and all applicable DCM regulations.
If no trading begins by April 6, 2027, Cboe Digital must reinstate its designation under regulation 38.3(b) before listing any products.
Cboe Digital said in its request, as described in the staff letter, that it is “currently evaluating commercial partnerships, sales opportunities, and strategic investments.”
