A CFTC Order authorizing the members of an Indian Exchange to use U.S. customer funds in certain transactions, without having to register with the CFTC, was published in the Federal Register.
As previously covered, the Order will enable National Stock Exchange of India Ltd. ("NSE") members to accept U.S. customer funds for trading in futures and options contracts on the NSE without having to register with the CFTC as futures commission merchants. The Order is contingent upon the NSE notifying the CFTC of any relevant changes to the local laws or regulations that govern the NSE. The CFTC noted that the exemption does not extend to swaps transactions. The CFTC deferred to the authority of the NSE concerning transactions in Indian products.
The Order became effective on May 22, 2018.
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