On June 25, 2019, the Commodity Futures Trading Commission published for comment a proposed amendment to CFTC Regulation 30.10. Part 30 of the CFTC’s regulations govern the offer and sale of foreign futures and options to customers located in the United States. Among other requirements, Regulation 30.4 requires any person that solicits or accepts orders for execution on a foreign board of trade and that, in connection therewith, accepts any money or securities to margin any resulting contracts, to be registered with the CFTC as a futures commission merchant (FCM). Regulation 30.10 authorizes the CFTC to exempt from registration as an FCM any person located outside of the U.S. that the CFTC finds is subject to a comparable regulatory structure in the jurisdiction in which it is located. Requests for exemption are generally filed by a non-U.S. regulatory authority or self-regulatory organization on behalf of their registrants.
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On August 13, President Trump signed into law the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The new law expands the jurisdiction and powers of the Committee on Foreign Investment in the United States (CFIUS) and will have material implications for investments made in US businesses by foreign investors. Certain provisions of the new law went into effect immediately. Others will become effective after implementing regulations are adopted.
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On August 8, the UK Financial Conduct Authority (FCA) published a “Dear CEO” letter concerning cross-border booking arrangements.

In the letter, the FCA explains that the UK’s impending withdrawal from the EU has resulted in firms needing to put in place contingency plans that, when executed, will impact current business models, legal entity strategies and booking arrangements. The FCA states that it appreciates the information firms have already provided to it on their plans, and reminds firms of the importance of continuing to provide all necessary information. The FCA further states that firms should not make decisions without first speaking to the FCA.
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The Security Exchange Commission has added an additional piece to its array of cross-border rules for security-based swaps (SBS). The new rule confirms that, consistent with the position taken by the Commodities Futures Trading Commission with respect to cross-border swaps, a non-US person must include in its de minimis calculations for security-based swap dealer registration any non-cleared “dealing” SBS it executes with a non-US-person counterparty if the swap is “arranged, negotiated or executed” by personnel of the non-US person located in a US branch or office or by agents of the non-US person located in a U.S. branch or office.
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