Washington D.C. – The U.S. Commodity Futures Trading Commission (CFTC) granted Orders of Registration to two Foreign Boards of Trade (FBOTs), BVMF and Cleartrade, on June 1, 2016. The orders permit both entities to provide direct access to their electronic trading systems for U.S.-based members and participants.
The CFTC’s decision, made under Part 48 of its regulations, hinges on the demonstration that both BVMF and Cleartrade operate as established, organized exchanges subject to comprehensive regulatory oversight comparable to that of the CFTC itself. This allows U.S. investors to participate in these foreign markets with a degree of regulatory assurance.
BVMF, based in Brazil, will offer direct access to futures and options contracts spanning a diverse range of assets. These include interest rates, foreign exchange, securities, inflation indices, government bonds, physical commodities, and energy products. Cleartrade, operating internationally, will focus on futures and options on futures contracts for freight, container rates, iron ore, steel, coal, and fertilizer.
Both BVMF and Cleartrade submitted applications affirming that their respective regulatory frameworks meet the CFTC’s registration requirements outlined in regulation 48.7. Prior to this order, BVMF had been operating under a no-action letter from CFTC staff, which was automatically withdrawn upon the issuance of the official Order of Registration.
The CFTC determined that both entities possess the capacity to adhere to applicable regulations. The Orders of Registration stipulate that BVMF and Cleartrade must comply with CFTC regulation 48.8, covering Conditions of Registration, and any further conditions the CFTC may impose. They are also required to uphold the representations made in their registration applications, ensuring continued regulatory compliance.
This move aims to facilitate international trade while maintaining investor protection within the U.S. commodity futures and options markets.
Source: CFTC.gov
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