The US CFTC has issued an Order of Registration (Order) to Dubai Mercantile Exchange Limited (DME), a Foreign Board of Trade (FBOT) located in the Dubai International Financial Centre of the United Arab Emirates, allowing DME to provide its identified members or other participants located in the US with direct access to its electronic order entry and trade matching system.
DME previously offered direct access to US participants in accordance with CFTC Letter 07-06. According to CFTC regulation 48.6, this no-action letter is automatically withdrawn with the issuance of the DME Order.
DME’s application for registration included representations that its regulatory regime under its regulator, the Dubai Financial Services Authority, satisfies the requirements for registration under CFTC regulations. After reviewing the FBOT’s application, the CFTC determined that DME has demonstrated its ability to comply with the requirements of CFTC regulations, including CFTC regulation 48.8, which outlines the conditions of registration. This regulation also permits the CFTC to impose any additional conditions it deems necessary, after appropriate notice and opportunity to respond. DME must also continue to fulfil each of the representations it made in support of its registration application.
The CFTC issued the Order in accordance with Part 48 of the CFTC regulations, which provides that such an Order may be issued to an FBOT that satisfies the requirements for registration in CFTC regulation 48.7 and, among other things, possesses the attributes of an established, organised exchange and is subject to continued oversight by a regulator that provides comprehensive supervision and regulation that is comparable to the supervision and regulation exercised by the CFTC.
Including the DME Order, the CFTC has issued 17 FBOT Orders under CFTC regulations since May 2013. The CFTC previously approved Registration Orders to FBOTs in Brazil, Canada, Singapore, Malaysia, Japan, New Zealand, Germany, the United Kingdom, Netherlands and Switzerland.
