For Release: April 18, 2006
CFTC Revises Its Policy Regarding the Listing of New Futures and Option Contracts by Foreign Boards of Trade
Washington, D.C. – The Commodity Futures Trading Commission (Commission) today published in the Federal Register notice of a revision of the Commission’s policy regarding the timeframe for the listing of new futures and option contracts by foreign boards of trade (FBOT) that have received staff no-action relief to provide direct access to their automated trading systems from locations in the United States (Notice). The Notice provides that a FBOT must notify the Division of Market Oversight ten business days prior to offering such contracts and can list the contracts for trading ten business days after the date the Commission receives the notification, unless Commission staff notifies the FBOT that additional time is needed to complete a review of any regulatory issues pertinent to the additional contracts, including the need for enhanced market surveillance or additional information sharing.
In its notification, a FBOT need only to submit a copy of the initial terms and conditions of the additional contracts and a certification that it is in compliance with the terms and conditions of its no-action letter and that the additional contracts will be traded in accordance with those terms and conditions. The notification procedure does not apply to futures and option contracts that are covered by section 2(a)(1)(C)(ii) of the Commodity Exchange Act, which delineates jurisdiction between the Securities and Exchange Commission and the Commission for certain products. FBOTs continue to be required to seek and receive written supplemental no-action relief from Commission staff prior to offering these contracts through U.S.-located trading systems. The Notice, which is effective immediately, rescinds the “Statement of Policy of the Commodity Futures Trading Commission Regarding the Listing of New Futures and Option Contracts by Foreign Boards of Trade That Have Received Staff No-Action Relief to Place Electronic Trading Devices in the U.S.” dated June 30, 2000, and published at 65 Fed. Reg. 41641 (July 6, 2000).
R. David Gary
Last Updated: April 27, 2010