CFTC Registers Two Foreign Boards of Trade (FBOTs) | Practical Law

CFTC Registers Two Foreign Boards of Trade (FBOTs) | Practical Law

The CFTC issued orders of registration to two Foreign Boards of Trade (FBOTs), which enables them to provide participants located in the US with direct access to their electronic order entry and trade matching system.

CFTC Registers Two Foreign Boards of Trade (FBOTs)

Practical Law Legal Update w-002-5604 (Approx. 3 pages)

CFTC Registers Two Foreign Boards of Trade (FBOTs)

by Practical Law Finance
Published on 08 Jun 2016 • USA (National/Federal)
The CFTC issued orders of registration to two Foreign Boards of Trade (FBOTs), which enables them to provide participants located in the US with direct access to their electronic order entry and trade matching system.
On June 1, 2016, the CFTC issued orders of registration to the following Foreign Boards of Trade (FBOTs):
FBOTs are CFTC-registered non-US swap exchanges. Under the orders of registration, BVMF and Cleartrade are able to provide participants located in the US with direct access to their electronic order entry and trade matching systems.
Under Part 48 of the CFR, orders of registration may be issued to an FBOT that:
  • Possesses an organized exchange.
  • Is subject to continued oversight by a regulator that provides comprehensive supervision and regulation comparable to that of the CFTC.
(See Legal Update, Final Rules on Registration of Foreign Boards of Trade under Dodd-Frank Issued by CFTC.)
BVMF will offer direct access for futures and options contracts based on:
  • Interest rates.
  • Foreign exchange.
  • Securities and inflation indices.
  • Government bonds.
  • Physical commodities.
  • Energy.
BVMF has previously offered access to their electronic order entry and trade matching systems under a CFTC no-action letter, which is no longer valid.
Cleartrade will offer direct access for futures and options on futures contracts on:
  • Freight.
  • Container.
  • Iron ore.
  • Steel.
  • Coal.
  • Fertilizer.