CFTC Issues Order of Registration to Tokyo Commodity Exchange, Inc.

The CFTC issued an Order of Registration to the Tokyo Commodity Exchange, Inc. ("TOCOM"), a Foreign Board of Trade ("FBOT") located in Tokyo, Japan.

According to the Order, TOCOM is permitted to provide its identified members or other participants located in the U.S. with direct access to its electronic order entry and trade matching system. The access permits trade in futures contracts on metals, fuels, rubber, and agricultural commodities and futures and option contracts on gold.

The CFTC found that TOCOM demonstrated its ability to comply with the requirements of the applicable CFTC regulations. The terms and conditions that are applicable to the Order include, among others, that TOCOM shall comply with CFTC Rule 48.8, "Conditions of Registration," and any additional conditions that the CFTC deems necessary and may impose after appropriate notice and opportunities to respond.

CFTC Commissioner Wetjen issued a statement in which he commended the CFTC on its swift approval of TOCOM as an FBOT. Commissioner Wetjen stressed that this cross-border approach to the oversight of trading platforms "incentivizes higher standards around the world by requiring foreign entities that want access to U.S. market participants to be subject to supervision that is comparable and comprehensive to our regime under Dodd-Frank." He also encouraged the CFTC to formalize a workable regulatory regime for SEFs as a next step.

See: Tokyo Commodity Exchange FBOT Registration Order; Commissioner Wetjen's Statement.Related news: Registration of Foreign Boards of Trade (Final Rule) (January 4, 2012).