Release Number 8300-20

CFTC Expands its Part 30 Exemptive Program to Improve Global Market Access for U.S. Customers

November 02, 2020

The Commodity Futures Trading Commission today issued multiple orders as part of its longstanding Part 30 exemptive program of international cooperation and regulatory deference. Orders have been issued to the Bombay Stock Exchange (BSE), the National Stock Exchange International Financial Service Centre Limited (NSE IFC), the Montreal Exchange (MX), NZX Limited (NZX), and UBS AG (UBS).

For more than three decades since its inception, the CFTC’s Part 30 exemptive program has provided U.S. customers with increased access to foreign futures and options markets where foreign intermediaries are subject to comparable customer protection standards in their home jurisdiction. 

“These orders further demonstrate the CFTC’s commitment to international regulatory comity and deference. Cooperation among jurisdictions with comparable regimes is essential to fostering a vibrant marketplace,” said CFTC Chairman Heath P. Tarbert. “When I took over as Chairman, one of the first things I did was hit the reset button on our international relations. I am pleased that, since that time, we have had productive and successful engagements with our regulatory counterparts on a host of issues, including these Part 30 exemptive orders.” 

The orders, through CFTC Regulation 30.10, permit these foreign intermediaries to accept U.S. customer funds directly for the purpose of trading in futures and options contracts in foreign jurisdictions without the intermediaries having to register with the CFTC as a futures commission merchant. The orders issued to BSE, NSE IFSC, and NZX grant exemptive relief on behalf of their respective members. The order issued to MX amends and consolidates prior exemptive relief granted on behalf of its members to reflect regulatory improvements with respect to the protection of U.S. customer funds. UBS, a Swiss bank, is the first recipient of an order not issued to either a foreign self-regulatory organization or regulator. 

The orders will be published in the Federal Register and the relief granted to each firm will be effective upon the filing of certain representations with the National Futures Association.

More information on the CFTC’s Part 30 exemptions is available here.