US Traders’ Access to Foreign Platforms Draws Scrutiny From CFTC

The US derivatives regulator is launching a review of foreign trading platforms that let US-based individuals directly access their electronic trading systems, according to an agency official familiar with the matter.

The Commodity Futures Trading Commission is examining foreign boards of trade to ensure they are properly managing risks, according to the official who asked to speak anonymously to discuss internal matters.

About two dozenforeign platforms have a so-called FBOT designation, which means their home country’s regulator has an information-sharing arrangement with the agency and their rules are considered comparable with the CFTC.

That label allows the exchange to ...