The Market Participants Division (MPD) of the US Commodity Futures Trading Commission (CFTC) is loosening up restrictions for providers of passive trading software. The regulator just published a no-action position for passive trading apps, stating that as long as certain criteria are met, the CFTC won’t push for enforcement against companies running these tools without registering as an introducing broker.

What Passive Trading Software Can Actually Do

The new guidance spells out what’s allowed: these platforms can display market data and a user’s positions, show info about available products, and route user orders to registered market participants. As long as they stick to these functions and meet the outlined conditions, software providers don’t need to register as introducing brokers.

Who This Impacts

This move is aimed at developers and providers of trading apps that aren’t acting as brokers themselves, but are focused on support features—like data visualization, product info, or routing orders to already registered counterparties. The MPD’s stance gives much-needed clarity on where the line is for these types of services, letting them operate without the full burden of introducing broker registration.