CFTC Sets Effective Date on Rule to Allow FBOTs to Provide Direct Trading Access to US IBs

The CFTC set an effective date of September 16, 2024 for a final rule to allow foreign trade boards ("FBOTs") to offer direct trading access to US-based introducing broker participants. The final rule was published in the Federal Register.

As previously covered, the amendments to CFTC Rules Part 48 ("Registration of Foreign Boards of Trade") permit a CFTC-registered FBOT to provide direct access to its electronic trading and order matching system for a CFTC-registered introducing broker participant located in the United States. In addition, the CFTC established a procedure for an FBOT to request revocation of its registration and to remove certain outdated references to no-action relief.