CFTC-Ready Compliance for Digital Asset Collateral
CFTC Letter 26-05 introduced specific requirements for FCMs accepting stablecoins and digital assets as customer margin collateral. Kontext provides the tamper-evident audit trail, automated reporting, and segregation tracking you need.
Why FCMs need purpose-built compliance infrastructure
CFTC Letter 26-05 creates new obligations that legacy systems were never designed to handle.
New CFTC reporting requirements for digital asset collateral
CFTC Letter 26-05 introduces specific reporting and record-keeping obligations for FCMs accepting stablecoins and digital assets as customer margin collateral. Meeting these requirements demands purpose-built infrastructure.
Daily mark-to-market with haircut validation
Digital asset collateral must be valued daily using DCO reference prices with mandatory haircuts -- 20% minimum for non-BTC/ETH assets. Manual tracking is error-prone and unscalable.
Weekly reporting to the Commission
FCMs must submit weekly digital asset reports to the CFTC detailing collateral holdings by asset type and account class. Generating these reports manually consumes significant back-office resources.
Segregation calculation complexity across 3 account classes
Tracking segregation requirements across futures (4d), cleared swaps (22), and 30.7 secured accounts requires daily calculations with full audit trails for regulatory examination.
Cybersecurity incident documentation requirements
CFTC regulations require FCMs to document and report cybersecurity incidents promptly. Having tamper-evident logs of all digital asset operations is essential for incident response.
CFTC Letter 26-05 compliance infrastructure
Purpose-built tooling for the specific requirements FCMs face when accepting digital asset collateral.
Collateral Valuation Logging
Log every collateral valuation with asset type, quantity, market value, haircut percentage, and valuation method. Full audit trail with tamper-evident cryptographic digest chains.
Automated Haircut Validation
Enforce the 20% minimum haircut for non-BTC/ETH digital assets per CFTC Letter 26-05 requirements. Configurable haircut rules per asset class and DCO reference pricing.
Weekly CFTC Digital Asset Reports
Auto-generate weekly reports for the Commission detailing digital asset collateral holdings by asset type, account class, and valuation method. Export in required formats.
Daily Segregation Calculation Tracking
Track segregation requirements across futures, cleared swaps, and 30.7 secured accounts with daily calculations and full audit trails for regulatory examination.
Incident Reporting
Commission Reg 1.11-aligned cybersecurity incident documentation and alerting. Tamper-evident logs ensure incident records cannot be altered after the fact.
Tamper-Evident Audit Trail
Every collateral operation is recorded in a cryptographic digest chain. Provide regulators with verifiable proof that records have not been modified since creation.
Collateral valuation and weekly reporting
Use the CFTCCompliance class to log collateral valuations with haircut validation and generate weekly CFTC digital asset reports automatically.
- Automatic haircut validation per CFTC Letter 26-05
- Weekly report generation by account class and date range
- Every valuation linked in a tamper-evident digest chain
- Segregation tracking across futures, cleared swaps, and 30.7
- Export in CFTC-required formats
import { Kontext, CFTCCompliance } from 'kontext-sdk';
const kontext = Kontext.init({
projectId: 'fcm-collateral',
environment: 'production',
});
const cftc = new CFTCCompliance();
// Log a collateral valuation with haircut validation
const valuation = cftc.logCollateralValuation({
accountClass: 'futures', // 'futures' | 'cleared_swaps' | '30_7_secured'
assetType: 'payment_stablecoin',
assetSymbol: 'USDC',
quantity: 1_000_000,
marketValue: 1_000_000,
haircutPercentage: 0.02, // 2% for payment stablecoins
valuationMethod: 'dco_reference',
agentId: 'collateral-agent',
});
console.log('Valuation ID:', valuation.auditId);
console.log('Digest:', valuation.digest);
// Generate the weekly CFTC digital asset report
const report = cftc.generateWeeklyDigitalAssetReport(
'futures',
new Date('2026-02-03'),
new Date('2026-02-09'),
);
console.log('Report entries:', report.entries.length);
console.log('Total collateral value:', report.totalValue);
console.log('Export format:', report.format); // 'cftc_weekly'Enterprise pricing for FCMs
FCMs require custom pricing, dedicated support, and SLAs that match the regulatory stakes. Our Enterprise plan includes unlimited events, priority support, custom integrations, and a dedicated compliance engineering team.
Ready to meet CFTC Letter 26-05 requirements?
Talk to our team about how Kontext can support your FCM's digital asset collateral compliance infrastructure.