The Commodity Futures Trading Commission has issued an order to Bursa Malaysia Derivatives permitting designated Bursa Malaysia members to solicit and accept orders and customer funds directly from US customers for trading on that exchange without having to register with the CFTC as futures commission merchants.
This exemption follows similar exemptions granted to other foreign exchanges or foreign regulators pursuant to Regulation 30.10.
Orders issued by the commission pursuant to Regulation 30.10 allow firms located in certain foreign jurisdictions to deal directly with US customers on non-US markets without having to comply with certain requirements set forth in the Commodity Exchange Act and CFTC regulations, including the requirement to register with the Commission as a futures commission merchant.
These foreign firms are permitted to do so because they are subject to comparable customer protection standards in their home jurisdiction.
The criteria for the CFTC’s review of foreign standards are set forth in an Intepretative Statement contained in Appendix A to Part 30 of the CFTC’s regulations.
