The U.S. Commodity Futures Trading Commission (CFTC) has issued a no-action letter permitting derivatives clearing organizations (DCOs) to conduct daily settlements with clearing members through trust companies. The clarification was released by the CFTC's Division of Clearing and Risk. Under the new guidance, DCOs may use trust companies for settlement operations provided that those trust companies are treated identically to settlement banks in accordance with applicable CFTC requirements. This regulatory flexibility expands the options available to clearing organizations for managing their daily settlement processes.