Washington, DC — The Commodity Futures Trading Commission (CFTC) to Clarify Cross-Border Regulatory Commitments that it has unanimously approved a proposed rule to amend Part 30 of CFTC regulations that governs the offer and sale of foreign futures and options to customers located in the U.S. The proposed amendments would codify the CFTC’s authority to terminate exemptive relief issued to foreign firms.
“During my tenure as Chairman, the CFTC has worked diligently with foreign authorities to increase the use of regulatory deference,” said CFTC Chairman J. Christopher Giancarlo. “Regulators must maintain strong relations across jurisdictions, both in spirit and in written commitments, especially when dealing with complex financial derivatives that impact global markets. This Commission action helps ensure there is no misunderstanding among foreign authorities supervising brokers that are dealing directly with customers located in the U.S. regarding
their obligations. The CFTC is once again seeking to lead by example, and looks to authorities in other jurisdictions to demonstrate a similar commitment to regulatory deference and support for market-led activity taking place across international markets.”
Through its Part 30 exemptive program, the CFTC has provided U.S. customers with increased access to foreign futures markets for nearly 30 years by permitting customers to deal directly with foreign brokers subject to comparable regulatory oversight. A foreign regulator or SRO that seeks an exemption under § 30.10 on behalf of foreign brokers located in its jurisdiction must set forth, with particularity, the comparable laws regulations applicable in the jurisdiction in which that person is located. Within each exemptive order issued under § 30.10, the CFTC reserves the right, among other authority, to terminate the exemptive relief granted on its own motion. The proposed amendments would codify the process by which the CFTC may terminate exemptive relief issued under § 30.10(a).
The CFTC is seeking comments on the proposal. The comment period will end 30 days after the proposal is published in the Federal Register. All comments will be posted on the CFTC’s website.