CFTC Registers Backpack Clearing as a Derivatives Clearing Organization

The Commodity Futures Trading Commission registered TLD Clearing, Inc., which operates as Backpack Clearing, as a derivatives clearing organization Friday, approving its clearing role for several U.S. derivatives while an affiliate’s exchange application remains pending.

The registration covers futures that use margin and futures that are fully collateralized. It also covers futures options and swaps. These are the four categories named in the approved scope, with the futures authorization covering both margin-based and fully collateralized contracts.

TLD Markets, Backpack Clearing’s affiliated exchange, filed on April 22 to register as a designated contract market. The CFTC is still reviewing that application. The exchange filing is separate from TLD Clearing’s registration, so Friday’s action gives the clearing entity registered status but does not settle its affiliate’s request.

The CFTC’s action therefore applies to the clearing entity and its listed product categories. TLD Clearing, Inc. is the registrant, with Backpack Clearing as the name under which it operates. The affiliate’s designated contract market application remains a separate matter before the commission.