# CFTC staff broadens registration relief for passive derivatives-trading software providers

> CFTC Market Participants Division staff extended to all qualifying passive software providers a conditional no-action position previously available only to Phantom Technologies.

- URL: https://riadefi.com/regulation/2026-09-17-cftc-passive-software-provider-ib-registration-relief/
- Posture: Guidance
- Authorities: Commodity Futures Trading Commission, Market Participants Division
- Event date: 2026-09-17
- Effective: 2026-09-17
- Version: 1, published 2026-09-18 (first published 2026-09-18)
- Advisor-relevant: yes

## What changed

CFTC Market Participants Division staff extended to all qualifying passive software providers a conditional no-action position previously available only to Phantom Technologies. Until Commission rulemaking or guidance addressing introducing-broker registration for software developers becomes effective, staff will not recommend enforcement for failure to register as an introducing broker or associated person solely because a provider offers and markets passive front-end software through which users submit orders directly to registered intermediaries or designated contract markets. Covered interfaces may support event contracts, perpetual contracts, and other CFTC-regulated derivatives and may be embedded in wallet software, but providers must satisfy detailed disclosure, marketing, recordkeeping, notice, supervision, joint-liability, noncustody, and non-discretion conditions. The letter represents staff views and is not binding on the Commission.

## Who it affects

- Self-custodial wallet developers adding access to CFTC-regulated derivatives
- Other passive software providers connecting users with DCMs, FCMs, or introducing brokers
- Registered intermediaries contracting with passive trading-interface providers
- Advisers evaluating client access through wallet-integrated derivatives interfaces

## What is still open

- When the CFTC will adopt rulemaking or guidance that ends or replaces the no-action position
- How staff will apply the covered-activity and passive-functionality limits to specific interface designs
- Whether a particular provider's marketing, compensation, routing, or other conduct crosses into registrable introducing-broker activity
- How registered intermediaries and software providers will allocate supervision and joint-liability responsibilities in practice

## What it means for an advisor

- Confirm that any wallet-integrated or passive derivatives interface relied upon by clients has filed the required notice and satisfies every condition of Letter 26-25
- Review whether the provider holds assets, generates trading signals, exercises routing discretion, or performs other functions outside the relief
- Evaluate the registered DCM, FCM, or introducing broker relationship and the interface's conflicts, risk disclosures, marketing controls, records, and business-continuity arrangements
- Do not describe staff no-action relief as Commission approval or as eliminating other registration, fiduciary, commodity-interest, custody, or disclosure obligations

## Sources

1. [CFTC Staff Letter No. 26-25: No-Action Position Regarding Introducing Broker and Associated Person Registration Requirements](https://www.cftc.gov/csl/26-25/download) · Commodity Futures Trading Commission, Market Participants Division · 2026-09-17 · effective 2026-09-17
2. [CFTC Staff Issues No-Action Position to Providers of Passive Software](https://www.cftc.gov/PressRoom/PressReleases/9300-26) · Commodity Futures Trading Commission · 2026-09-17 · effective 2026-09-17


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.