CFTC: U.S. customers can deal directly with Malaysian brokers

Washington, DC – The Commodity Futures Trading Commission (CFTC) today issued an order to Bursa Malaysia Derivatives Bhd (Bursa Malaysia) permitting designated Bursa Malaysia members to solicit and accept orders and customer funds directly from U.S. customers for trading on that exchange without having to register with the CFTC as futures commission merchants (FCM). This exemption follows similar exemptions granted to other foreign exchanges or foreign regulators pursuant to Regulation 30.10.

Orders issued by the Commission pursuant to Regulation 30.10 allow firms located in certain foreign jurisdictions to deal directly with U.S. customers on non-U.S. markets without having to comply with certain requirements set forth in the Commodity Exchange Act and CFTC regulations, including the requirement to register with the Commission as an FCM. These foreign firms are permitted to do so because they are subject to comparable customer protection standards in their home jurisdiction. The criteria for the CFTC’s review of foreign standards are set forth in an Intepretative Statement contained in Appendix A to Part 30 of the CFTC’s regulations.

The order has been published in the Federal Register (75 FR 35291) and the relief is effective as to each foreign firm upon the filing of certain representations with the National Futures Association. For more information on Bursa Malaysia Derivatives Bhd’s Regulation 30.10 exemption, as well as a list of other Regulation 30.10 exemptions granted by the CFTC, please refer to the List of Part 30 Exemptions link on the International page of the CFTC’s website.

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