CFTC Approves ICE Exchange in Singapore for FBOT

SingaporeAmerican traders will now be able to seamlessly access an ICE exchange in Singapore.

The Commodities Futures Trading Commission (CFTC) approved ICE Futures Singapore Pte. Ltd. (ICEFS), to be a Foreign Board of Trade (FBOT).

Approval to be a FBOT means that US traders can now trade on ICEFS seamlessly. Here’s part of a CFTC press release.

“The Commodity Futures Trading Commission (CFTC) announced the issuance of an Order of Registration (Order) to ICE Futures Singapore Pte. Ltd. (ICEFS), a Foreign Board of Trade (FBOT) located in Singapore. Under the Order, ICEFS is permitted to provide its identified members or other participants located in the U.S. with direct access to its electronic order entry and trade matching system.

“The ICEFS application for registration included representations that its regulatory regime under its regulator, the Monetary Authority of Singapore (MAS), satisfies the requirements for registration under CFTC regulations. After reviewing the FBOT’s application, the CFTC determined that ICEFS 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. ICEFS must also continue to fulfill each of the representations it made in support of its registration application.”

A FBOT is any “board of trade, exchange or market located outside the United States, its territories or possessions.” according to the Cornell Law Review.

The Cornell Law Review further noted that any approved FBOT must meet these criteria.

(1) Possesses the attributes of an established, organized exchange,

(2) Adheres to appropriate rules prohibiting abusive trading practices,

(3) Enforces appropriate rules to maintain market and financial integrity,

(4) Has been authorized by a regulatory process that examines customer and market protections, and

(5) Is subject to continued oversight by a regulator that has power to intervene in the market and the authority to share information with the Commission.

MAS SingaporeFBOT registration is governed by Part of 48 of CFTC regulations. The CFTC further noted: “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, organized 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.”

ICE Futures Singapore was launched on November 17, 2015, and offers futures products in energy, metals, and forex, primarily serving traders in the far east.

“Our global infrastructure is engineered to provide markets and clearing houses in the time zones and regulatory jurisdictions where our customers do business.” The ICE Futures Singapore website noted.“As part of that infrastructure, ICE Futures Singapore offers secure, regulated futures trading and clearing services to market participants within this key region.

“Complementing our existing portfolio of financial and commodity benchmark contracts, ICE Futures Singapore’s regional portfolio of energy, gold and FX contracts offer a range of hedging tools based on the diverse needs of market participants.”

Intercontinental Exchange (ICE) is a conglomerate of global exchanges which includes the New York Stock Exchange (NYSE).

This is the 18th FBOT approved by the CFTC since May 2013.

Since that time, the CFTC has approved FBOTs from countries including: Brazil, Canada, Singapore, Malaysia, Dubai, Japan, New Zealand, Germany, the United Kingdom, Netherlands and Switzerland.