CFTC Grants Exemption from Foreign Futures and Options Regulations to Member Firms Designated by Bursa Malaysia
Co-authored by Joshua A. Penner
The Commodity Futures Trading Commission, acting pursuant to CFTC Regulation 30.10, has granted an exemption from certain of the CFTC’s foreign futures and options regulations to firms designated by Bursa Malaysia Derivatives Berhad (Bursa Derivatives) who offer and sell foreign futures and options on futures contracts to customers located in the United States.
In granting the exemption, the CFTC determined that the regulatory framework established by Malaysian law and the rules of Bursa Derivatives is comparable to that imposed by the Commodity Exchange Act and CFTC regulations. The exemption is limited to brokerage activities undertaken on behalf of customers located in the United States with respect to transactions on or subject to the rules of Bursa Derivatives for products that customers located in the United States may trade, and is conditioned on an eligible firm making and maintaining certain representations to the National Futures Association relating to compliance with applicable provisions of Malaysian law and the rules of Bursa Derivatives.
The Federal Register notice of the order can be found here.
