CFTC Proposes To Amend Exemption From Registration for Certain Foreign Persons

On July 27, the Commodity Futures Trading Commission announced proposed rules to amend current exemptions from CFTC registration for futures commission merchants (FCMs), introducing brokers (IBs), commodity trading advisers (CTAs) and commodity pool operators (CPOs) in connection with commodity interest transactions solely on behalf of persons outside the United States or certain international financial institutions (IFIs). The proposed rules will codify past no-action relief.

Under current rules, FCMs, IBs, CTAs and CPOs are eligible for an exemption from registration where the entity is located outside the United States, acts only on behalf of persons located outside the United States, and submits commodity interest transactions for clearing through a registered FCM. The proposed rules will remove the clearing requirement and allow a foreign entity to be eligible for a registration exemption if, in connection with commodity interest transactions, the entity acts only on behalf of persons outside the United States or on behalf of an IFI. The proposed rules contain a list of organizations that are considered to be IFIs.

The proposed rules are subject to a 30-day comment period from the date of their publication in theFederal Register and is available:



 

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