CFTC Issues Orders of Registration to Five Foreign Boards of Trade (FBOTs) | Practical Law

CFTC Issues Orders of Registration to Five Foreign Boards of Trade (FBOTs) | Practical Law

The CFTC issued orders of registration to five foreign boards of trade (FBOTs), enabling them to provide participants located in the US with direct access to their electronic order entry and trade-matching systems.

CFTC Issues Orders of Registration to Five Foreign Boards of Trade (FBOTs)

Practical Law Legal Update w-004-3369 (Approx. 3 pages)

CFTC Issues Orders of Registration to Five Foreign Boards of Trade (FBOTs)

by Practical Law Finance
Published on 01 Nov 2016 • USA (National/Federal)
The CFTC issued orders of registration to five foreign boards of trade (FBOTs), enabling them to provide participants located in the US with direct access to their electronic order entry and trade-matching systems.
On October 31, 2016, the CFTC issued orders of registration to the five following foreign boards of trade (FBOTs):
FBOTs are non-US swap exchanges registered with the CFTC. Under an order of registration, an FBOT can provide its participants located in the US with direct access to its electronic order entry and trade-matching systems.
The CFTC is authorized to issue orders of registration to FBOTs under Part 48 of the CFTC's regulations (see Legal Update, Final Rules on Registration of Foreign Boards of Trade under Dodd-Frank Issued by CFTC). Part 48 provides that an order of registration can be provided to an FBOT that:
  • Possesses an organized exchange.
  • Is subject to continued oversight by a regulator that provides comprehensive supervision and regulation comparable to the CFTC.
Eurex, IFE, and LME were previously granted direct access to US participants through CFTC No-Action Letters 99-48, 99-69, and 01-11. These no-action letters expire upon issuance of the registration order.
Since the enactment of the Dodd-Frank Act, the CFTC has issued a total of 14 orders of registration to FBOTs. For information on previous orders, see Legal Update, CFTC Registers Two Foreign Boards of Trade (FBOTs).
For more information on FBOTs, see Practice Note, The Dodd-Frank Act: Swap Clearing and Exchange Trading Under Title VII: Registration of Foreign Boards of Trade (FBOTs) under Dodd-Frank.