CFTC NEWS AND SPEECHES—CFTC approves foreign boards of trade final rule - 31 July 2024

The CFTC approves final rule allowing U.S. introducing brokers direct access to registered foreign boards of trade for the submission of customer orders.

The CFTC approved final rules amending Part 48 of its regulations. The final rules permit a foreign board of trade (FBOT), registered with the CFTC, to provide direct access to its electronic trading and order matching system to an introducing broker (IB), located in the U.S. and registered with the CFTC, for the submission of customer orders to the FBOT’s trading system for execution. Additionally, the final rules establish a procedure for an FBOT to request revocation of its registration and remove outdated references to “existing no-action relief” in Part 48.

FBOT Final Rule. The CFTC is amending part 48 of its regulations to permit a FBOT registered with the CFTC to provide direct access to its electronic trading and order matching system to an identified member or other participant located in the U.S. and registered with the CFTC as an IB for submission of customer orders to the FBOT’s trading system for execution. The CFTC is also establishing a procedure for an FBOT to request revocation of its registration and removing certain outdated references to “existing no-action relief.” The final rules are effective 30 days from the date of publication in the Federal Register.

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