The Commodity Futures Trading Commission (CFTC) issued a no-action position on September 17, 2026, under Release 9300-26. This move expands upon relief previously granted in Staff Letter 26-09, which was issued to Phantom Technologies, Inc. in March.
Technology vendors providing passive software are now exempt from registering as introducing brokers or associated persons. This applies to software that connects users to CFTC-regulated derivatives markets, such as futures commission merchants or designated contract markets.
To qualify, software must remain passive. It can route orders and display market data but cannot hold asset custody, generate trading signals, or make decisions on behalf of users. Furthermore, it must connect users exclusively to entities already registered with the CFTC.
This guidance aims to clarify the regulatory status of software providers, potentially facilitating the development of integrated platforms that combine wallet functionality with access to regulated derivatives. The agency has maintained similar technology service vendor relief since 2002.
The no-action position is not a formal rule change and does not override state-level regulations. The CFTC staff retains the right to modify or withdraw this stance, and the relief is void if a provider engages in active trading functions or discretion.
