Reporting Regulatory Updates and Developments in a Foreign Regulator's Jurisdiction

Pursuant to Regulation 30.10(c)(1), Orders granting exemptive relief under Section 30.10 are subject to termination or amendment if the Commission determines that material changes or omissions of facts and circumstances demonstrate that the standards outlined in Part 30, Appendix A are no longer being met.  Similarly, termination or amendment may be appropriate where the Commission finds that the continued effectiveness of the exemptive relief Order is contrary to the public interest, or where information sharing arrangements no longer warrant continued relief.

The Commission must be able to properly monitor the implementation of its program to exempt firms located in jurisdictions generally deemed to have a comparable regulatory program, make necessary adjustments to the conditions of specific orders as appropriate.  Accordingly, recipients of exemptive relief orders should notify the Market Participant Division of any material changes in circumstances.  These circumstances include, but are not limited to, the following:

  • Changes with regards to the identity or organization of the original Petitioner (i.e. change in control, change in name, change in structure, etc.).
  • Changes in the role of the government, the regulator, or the self-regulatory organization(s) which has or could potentially impact their supervision of and their enforcement powers over the exchange and its members.
  • Changes in the legal framework which impacted or could impact any of minimum elements of a comparable regulatory program as set forth in Appendix A of Part 30;
  • Changes in insolvency laws as they affect futures customers.
  • Changes to the accounts in which security futures products are held (i.e. equity accounts, futures accounts, or combined accounts) or to whether security futures products are subject to separate disclosure and margin requirements than other futures products.
  • Changes to list of all firms with relief under a Regulation 30.10 exemption order.
  • Any arbitration and/or disciplinary proceedings involving exempt firms, arising from transactions with U.S. customers.

Recipients of exemptive relief should promptly notify MPD if these or any other material changes apply to the local regulatory authority.  Foreign regulators or futures exchanges, or a member firm on whose behalf relief has been granted, can submit updates or notifications to [email protected].  Doing so will aid the Commission in fulfilling its obligation to ensure that the exemptive relief program is achieving its purpose and is serving the public interest.