The US Commodity Futures Trading Commission (CFTC) has issued Orders of Registration to five foreign boards of trade (FBOT), allowing them to provide identified members or other participants located in the US with direct access to its electronic order entry and trade matching system.
The five FBOTs are Eurex Deutschland; CME Europe (CMEEL); CE Futures Europe (IFE); The London Metal Exchange (LME); and London Stock Exchange (LSE).
Eurex, IFE and LME previously offered direct access to US participants in accordance with CFTC Letters 99-48; 99-69; and 01-11. According to CFTC regulation 48.6, these no-action letters are automatically withdrawn with the issuance of registration orders for Eurex, IFE and LME.
Eurex is based in Frankfurt and subject to principal regulatory oversight by the Exchange Supervisory Authority of the State of Hesse in Germany. CMEEL, IFE, LME and LSE are headquartered in London and subject to principal regulatory oversight by the UK’s Financial Conduct Authority.
The CFTC issued the orders under Part 48 of the CFTC’s regulations, which provides that such orders may be issued to an FBOT that possesses, among other things, 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 five FBOT orders of registration issued today, the CFTC has issued seven orders this year and a total of 14 oOrders since the enactment of the Dodd-Frank Act.
Previously approved FBOT registration orders include those issued to FBOTs in Brazil, Canada, Singapore, Malaysia, Japan and New Zealand.