CFTC revises policy on listing of new futures and option contracts by FBOTs
The Commodity Futures Trading Commission has revised its policy on the time-frame for the listing of new futures and option contracts by foreign boards of trade (FBOT).
The notice, which applies to listings that have received staff no-action relief to provide direct access to their automated trading systems from locations in the United States, provides that a FBOT must notify the Division of Market Oversight ten business days prior to offering such contracts, The FBOT can then list the contracts for trading ten business days after the date the Commission receives the notification, unless Commission staff notifies the FBOT that additional time is needed to complete a review of any regulatory issues pertinent to the additional contracts. This includes the need for enhanced market surveillance or additional information sharing.
In its notification, a FBOT need only submit a copy of the initial terms and conditions of the additional contracts and a certification that it is in compliance with the terms and conditions of its no-action letter and that the additional contracts will be traded in accordance with those terms and conditions.
The notification procedure does not apply to futures and option contracts that are covered by section 2(a)(1)(C)(ii) of the Commodity Exchange Act, which delineates jurisdiction between the Securities and Exchange Commission and the Commission for certain products. FBOTs are still required to seek and receive written supplemental no-action relief from Commission staff prior to offering these contracts through US-located trading systems.
The notice, which is effective immediately, rescinds the 'Statement of Policy of the Commodity Futures Trading Commission Regarding the Listing of New Futures and Option Contracts by Foreign Boards of Trade That Have Received Staff No-Action Relief to Place Electronic Trading Devices in the US' dated 30 June 2000, and published at 65 Fed. Reg. 41641 (6 July 2000).
For further information and related articles on US legal & regulation, please click here
- By Category
- News from other sites
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Luxembourg Private Equity Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
Latest Special Report
- By Location