The CFTC granted orders of registration under CFTC Rule 48.8 to two foreign boards of trade ("FBOTs") that will permit them to provide identified members or other participants located in the United States with direct access to the FBOTs' electronic order entry and trade matching systems. The registration was granted after the CFTC found that both FBOTs (i) demonstrated their ability to comply with applicable CFTC rules, and (ii) were subject to oversight in their home countries that was comparable to the supervision and regulation exercised by the CFTC.
The CFTC noted that one FBOT, Bolsa de Valores, Mercadorias e Futuros ("BVFM"), will provide direct access for trading in futures and options contracts based on interest rates, foreign exchange, securities and inflation indices, government bonds, physical commodities and energy. Prior to the CFTC's order, BVFM had been operating pursuant to CFTC No-Action Letter 09-03, which was withdrawn when BVFM became registered. In addition, the CFTC emphasized, the other FBOT, Cleartrade Exchange Pte Limited, will offer direct access to trading in futures and options on futures contracts on freight, container, iron ore, steel, coal and fertilizer.
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