The Commodities Futures Trading Commission (CFTC) has approved an upstart European exchange for direct access in the US.
The CFTC announced an order for registration for Eurex Zurich AG as a Foreign Board of Trade.
Eurex Zurich AG is a part of the Eurex group of international exchanges first founded in 1998 which primarily offers trading in European based derivatives and it is the largest European futures and options market.
A Foreign Board of Trade (FBOT) is “A futures exchange based outside the United States. Foreign boards of trade that wish to offer direct access in the U.S.” according to a financial website, “(which) must register with the CFTC.”
Fourteen exchanges have now been approved by the CFTC as FBOT with another fourteen applications pending.
The exchanges currently approved by the CFTC as FBOT include: ICE Futures Europe, the London Metals Exchange, the Australian Securities Exchange, and CME Europe.
“Eurex Zurich’s application for registration included representations that its regulatory regime under its regulatory authority, the Swiss Financial Market Supervisory Authority (FINMA), satisfies the requirements for registration under CFTC regulations.” The CFTC stated. “After reviewing the FBOT’s application, the CFTC determined that Eurex Zurich 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. Eurex Zurich 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, 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.”
According to a recent profile, Eurex Zurich AG’s head of sales, Markus-Alexander Flesch, the Zurich office has a staff of twenty-two including six in their derivative team.
“The derivative department’s six-person team has primarily had as clients all of the founding members of the Swiss Eurex that was taken over by the former SOFFEX in 1998, although other customers from Italy, Greece, Cyprus, Malta and Israel have been added to the portfolio over the years.” Flesch said.
The exchange did not release a statement and an email to their general counsel, Sean Dugan, was left unreturned.