The CFTC and the Japan Financial Services Agency ("JFSA") agreed to exempt certain electronic derivative trading platforms ("ETPs") from having to register in their non-home jurisdictions.
The CFTC Order exempts ETPs that are regulated by the JFSA from registering with CFTC as swap execution facilities. Concurrently, the JFSA will facilitate the authorization process of CFTC-authorized derivatives platforms that seek to operate in Japan.
The exemptions were issued in a manner consistent with each country's policy of extending cross-border regulatory deference to trading venues subject to comparable regulation. According to the CFTC, this "ensures that market participants can rely on comprehensive rules and regulations of one jurisdiction without fear that another jurisdiction will seek to selectively impose an additional layer of regulatory obligations on them."
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