CFTC Clarifies Extent To Which Investors May Trade In Foreign Security Futures

On June 8, 2010, the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Intermediary Oversight (DCIO) issued an advisory (the “Advisory”) clarifying the extent to which certain sophisticated customers located in the United States may trade in foreign security futures products (FSFPs).¹ An FSFP is a security future listed for trading on a non-U.S. exchange. The CFTC issued the Advisory to address questions raised by market participants following the Securities and Exchange Commission’s (SEC) publication of an order (the “SEC Order”) on June 30, 2009, granting an exemption permitting certain sophisticated customers to trade FSFPs.²

Background

The ...