This CFTC rule is an important step in expanding access to non-US derivatives exchanges to US market participants. As noted in the rule proposal, FBOTs are currently permitted to grant direct trading access to US FCMs, CPOs and CTAs to place orders for their customers (or for commodity pools, in the case of CPOs). However, FBOTs have not previously been permitted to grant direct trading access to US IBs. This rule fills this gap by permitting FBOTs to grant direct trading access to US IBs to…

Significance of Proposal for U.S. Broker-Dealers

The FCA’s Consultation Paper on is a significant proposal, as it would enable U.S. broker-dealers to provide securities research to UK asset managers under a soft dollar arrangement, and thus fall within the exclusion from regulation as an investment adviser under the U.S. (the "Advisers Act"). The FCA Consultation Paper references similar legislative initiatives in the EU. If adopted, these proposals would collectively enable U.S.…

The Joint Statement is an important contribution to the ongoing dialogue between the securities industry and regulators as to how to apply existing regulatory requirements to transactions involving digital assets. In this vein, the Joint Statement highlights certain key challenges faced by broker-dealers in complying with custody, recordkeeping and reporting requirements without prescribing how firms should comply with these requirements. Rather, the agencies acknowledge that the industry is…