The Commodity Futures Trading Commission has published notice to foreign boards of trade (FBOTs) who provide direct access to members or participants in the United States regarding certain additional conditions on their no-action relief from the CFTC. These conditions were set out this summer in amendments to no-action letters previously issued to ICE Futures Europe and Dubai Mercantile Exchange, and affect FBOTs that list for trading by direct access from the United States any futures or option contract that settles against the price of a contract listed on a CFTC-regulated futures exchange (including “significant price discovery contracts” traded on an exempt commercial market). With respect to any such contracts, the FBOT is required to (i) adopt speculative position limits and position accountability levels (and related hedge exemptions) that are comparable to those established by the U.S. listing exchange; (ii) report to the CFTC on a quarterly basis any violations of applicable position limits, whether a hedge exemption was granted and whether disciplinary action was taken; (iii) publish daily trading information comparable to the information published by the U.S. listing exchange; and (iv) provide to the CFTC a daily report of large trader positions, in a format acceptable to the CFTC.  

The CFTC notice also set forth a streamlined procedure for listing options on futures contracts for direct access from the United States.