On January 5, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight issued a no-action letter authorizing registered futures commission merchants and introducing brokers to exclude deferred tax liabilities that are directly related to the capitalized costs of certain non-allowable assets when computing their adjusted net capital under Regulation 1.17. The tax deferred liabilities reflect differences between book accounting and tax accounting that result from changes to generally accepted accounting principles that require the capitalization of certain costs that are immediately expensed for income tax purposes.

CFTC Letter No. 18-01 is available here.